[Updated] Trump signs Executive Order to create a 'Bitcoin Strategic Reserve'

[hero_the_bossman]

I can't say I was not expecting this with the people that were around him and Eric Trump. XRP Founder, Cardano's Founder etc. I do find it stupid, because not even ADA holders use ADA but well...

EDIT: Bitcoin and Ethereum are also going to be included in the strategic reserve.

What are your thoughts on this?
<snip>

That is way too strange mate, Like trump is considering the altcoins as Strategic Reserve because, in my point of view, only Bitcoin has the potential right to be added to strategic reserve as it is a digital gold but I/we don't know what kinda plan Trump have all behind this, as we saw his recent tweet about this and ada pump to 2x price from its trading value, Currently market sentiments are also strange like in recent time we have seen how fast market is dumping and recovering its value back above to 92k. So, it is hard to time it like what are the correct plan of Trump all behind this adding altcoins to the Strategic Reserve.

Trump is a wild card, that applies to the reserves too.

And surely that's why there is not only BTC in these reserves, which would be the best option long-term for the US.

[Iranus]

Bitcoin is a good choice, no doubt and it's common sense that everyone agree that Bitcoin is a best choice for Strategic Reserves.

Both Ethereum, Ripple and Solana are not good because they have unlimited supplies. Ethereum with decreasing on chain transaction demands recent months by more expensive fee and less competitive with other blockchains, has big issues that new supply is bigger than burn ETH from fees. It makes total supply scheme of Ethereum is inflationary and unlimited until any big change happens technically and on chain transaction demand.

Nearly same for Solana and with Ripple, it's considerable centralization of XRP in Ripple company, they can unlock it and dump it on the market any time.

Supply is not a big issue because if needed, they can fix the algorithm to remove or burn coins like BNB is doing and the supply will become scarce. The problem that makes altcoins not comparable to bitcoin is that they are too centralized instead of decentralized, and having an asset that is centralized, managed or controlled by 1 person or a group is very risky.

Overall, adding altcoins to strategic reserves alongside bitcoin would devalue it, making bitcoin trivial and no longer special. Meanwhile, bitcoin is clearly on a completely different level than the rest of the crypto industry, which is why there is so much opposition.

[fikrett]

Supply is not a big issue because if needed, they can fix the algorithm to remove or burn coins like BNB is doing and the supply will become scarce. The problem that makes altcoins not comparable to bitcoin is that they are too centralized instead of decentralized, and having an asset that is centralized, managed or controlled by 1 person or a group is very risky.

Overall, adding altcoins to strategic reserves alongside bitcoin would devalue it, making bitcoin trivial and no longer special. Meanwhile, bitcoin is clearly on a completely different level than the rest of the crypto industry, which is why there is so much opposition.

You basically described why Gov would choose something else than BTC - they would be able to have more levers with it, but with BTC - there would be none due to it being decentralized.

[bubilas]

Firstly, I don't really understand where Trump is going to get the money for this reserve. The US has enough problems now and the stock markets are being shaken by Trump's duties for other countries, and accordingly, cryptocurrencies are feeling bad because of this. Secondly, this news that the above-mentioned list of altcoins will be included in the Reserve does not make it a fact that Trump will subsequently say: "Guys, I thought about it, only Bitcoin can be in the Reserve."
Well, we'll find out tomorrow.

[Cookdata]

Firstly, I don't really understand where Trump is going to get the money for this reserve. The US has enough problems now and the stock markets are being shaken by Trump's duties for other countries, and accordingly, cryptocurrencies are feeling bad because of this. Secondly, this news that the above-mentioned list of altcoins will be included in the Reserve does not make it a fact that Trump will subsequently say: "Guys, I thought about it, only Bitcoin can be in the Reserve."
Well, we'll find out tomorrow.

Did you say you don't know where they are going to get the money for this reserve? Like you seriously or you have forgotten they have a printing press for money in the federal reserve where new currency are been printed. He did that during the Covid 19 time, gifting money and packages worth billions of dollars and nothing change, just the usual inflation and you know how they do it, they have their own ways of coming out of inflation by numbers though.

They can do whatever they want with the altcoins, that's their choice but they can't manipulate the Bitcoin market unless the rest of the holders will dump their Bitcoin for cheap so they can buy. Altcoin holders are weak and know how to quickly press the sell button, that rarely happen in Bitcoin because they don't sell and that's why we continue to have demand with little available supply in the market. Bitcoin reserve >>>> Altcoins reserve combine.

[Marvell1]

Did you say you don't know where they are going to get the money for this reserve? Like you seriously or you have forgotten they have a printing press for money in the federal reserve where new currency are been printed. He did that during the Covid 19 time, gifting money and packages worth billions of dollars and nothing change, just the usual inflation and you know how they do it, they have their own ways of coming out of inflation by numbers though.

That means the Trump administration needs to convince the Fed but Fed Chairman, Power has also stated that they have no intention of adding bitcoin to the national reserves. Congress may be seen as the only body that can influence and direct what the Fed should do, but not all members of Congress support Trump's ideas.
Can the Trump administration create a strategic reserve without congressional approval and without the Fed?

They can do whatever they want with the altcoins, that's their choice but they can't manipulate the Bitcoin market unless the rest of the holders will dump their Bitcoin for cheap so they can buy. Altcoin holders are weak and know how to quickly press the sell button, that rarely happen in Bitcoin because they don't sell and that's why we continue to have demand with little available supply in the market. Bitcoin reserve >>>> Altcoins reserve combine.

On the contrary, I think they have enough power to manipulate the bitcoin market the way they want, and buying bitcoin is not as difficult as you say. Even ETFs didn't take long to buy over 1 million BTC in less than a year, so governments can easily buy bitcoin in the amount and even at the price they want.

[Uphold9739]

Ah, it turned out to be so fake and gay. Microstrategy showed the way. Take this 200k BTC as the collateral for a loan. Buy another 140k of BTC. Take another loan and buy 100k BTC... etc You could easily balloon this reserve to 650k BTC without involving tax payers money

[d5000]

Ah, it turned out to be so fake and gay.

Why? It's exactly what Trump promised: "Don't sell a Bitcoin".

200k coins isn't exactly nothing, and it means that this stack will not be sold in the short and medium term.

It's a good decision, at least regarding the Bitcoin reserve (the shitcoin reserve instead is terrible from every possible point of view, a complete waste of taxpayers money). Governments shouldn't have too much power in the Bitcoin game, and if they hold millions of BTC, they would likely have the power to change some development decisions. Even more so if the Bitcoin community is only concerned about short term price pumps and not about values like censorship resistance and decentralization.

That aside, even a million BTC bought would probably barely move the market on its own (that's the current accumulated Bitcoin trading volume of 1-3 days), it needs other buyers creating a supply shortage.

About your loan idea ... that would indeed involve taxpayers' money if the price change doesn't make up for the interest rates. There is no guarantee for a rising price, and buying now would mean also to buy the Bitcoins expensively, perhaps close to the cycle top.

[BlackBoss_]

Why? It's exactly what Trump promised: "Don't sell a Bitcoin".

200k coins isn't exactly nothing, and it means that this stack will not be sold in the short and medium term.

It's a good decision, at least regarding the Bitcoin reserve (the shitcoin reserve instead is terrible from every possible point of view, a complete waste of taxpayers money). Governments shouldn't have too much power in the Bitcoin game, and if they hold millions of BTC, they would likely have the power to change some development decisions. Even more so if the Bitcoin community is only concerned about short term price pumps and not about values like censorship resistance and decentralization.

At least, the USA government won't sell those seized bitcoin, it is good news.

Did the market have fear of USA governement sales off their seized bitcoin from criminal activities in many years?
It's big fud that was reused many times in Bitcoin market history. Now, after this announcement of Trump, there is no similar fud, at least in his four year presidency.

It's good news, indeed.

But I am still disappointed that he did not announce plans of purchasing more bitcoins for the USA strategic reserve. Maybe he needs to work with constitutions before the USA can do it. Let's wait, but this news is actually good, just less than many expectation.

[FortuneFollower]

At least, the USA government won't sell those seized bitcoin, it is good news.

Did the market have fear of USA governement sales off their seized bitcoin from criminal activities in many years?
It's big fud that was reused many times in Bitcoin market history. Now, after this announcement of Trump, there is no similar fud, at least in his four year presidency.

It's good news, indeed.

But I am still disappointed that he did not announce plans of purchasing more bitcoins for the USA strategic reserve. Maybe he needs to work with constitutions before the USA can do it. Let's wait, but this news is actually good, just less than many expectation.

Trump knows how to spike things up, so he does it in doses, just like as bullish news come, so come the news about so-called tariff wars, and so on.

We just need to wait more.

[care2yak]

The US primarily holds seized Bitcoin and some Ethereum. There are no seized holdings of solana, ripple, and cardano. The crypto strategic reserve is mainly btc and eth. The rest were just mentioned to pump those assets and have their insider reap gains I think...

[OmegaStarScream]

It's good news, indeed.

But I am still disappointed that he did not announce plans of purchasing more bitcoins for the USA strategic reserve. Maybe he needs to work with constitutions before the USA can do it. Let's wait, but this news is actually good, just less than many expectation.

Actually, there are still plans to buy and accumulate more bitcoin as long as it doesn't cost taxpayers any money:

The Secretaries of Treasury and Commerce are authorized to develop budget-neutral strategies for acquiring additional bitcoin, provided that those strategies impose no incremental costs on American taxpayers.

Now what does that mean exactly, and what's is the potential? are we talking millions or billions here? that I'm not entirely sure of.

I'd like to get some thoughts on this?

[Wind_FURY]

Why? It's exactly what Trump promised: "Don't sell a Bitcoin".

200k coins isn't exactly nothing, and it means that this stack will not be sold in the short and medium term.

It's a good decision, at least regarding the Bitcoin reserve (the shitcoin reserve instead is terrible from every possible point of view, a complete waste of taxpayers money). Governments shouldn't have too much power in the Bitcoin game, and if they hold millions of BTC, they would likely have the power to change some development decisions. Even more so if the Bitcoin community is only concerned about short term price pumps and not about values like censorship resistance and decentralization.

At least, the USA government won't sell those seized bitcoin, it is good news.

Did the market have fear of USA governement sales off their seized bitcoin from criminal activities in many years?
It's big fud that was reused many times in Bitcoin market history. Now, after this announcement of Trump, there is no similar fud, at least in his four year presidency.

It's good news, indeed.

But I am still disappointed that he did not announce plans of purchasing more bitcoins for the USA strategic reserve. Maybe he needs to work with constitutions before the USA can do it. Let's wait, but this news is actually good, just less than many expectation.

The U.S. took the least problematic path, politically, to start the Strategic Bitcoin Reserve. It might be very disappointing for some of us HODLers, but it's absolutely better than the narrative that "the money that's rightfully for the people is being used to trade Bitcoin".

If Bitcoin crashes after government purchase, what would that show the normies? That Bitcoin is a Ponzi shitcoin that should be avoided? We don't want that perception.

[franky1]

https://www.whitehouse.gov/presidential-actions/2025/03/establishment-of-the-strategic-bitcoin-reserveand-united-states-digital-asset-stockpile/

    Sec. 2.  Policy.  It is the policy of the United States to establish a Strategic Bitcoin Reserve.  It is further the policy of the United States to establish a United States Digital Asset Stockpile that can serve as a secure account for orderly and strategic management of the United States’ other digital asset holdings.

     Sec. 3.  Creation and Administration of the Strategic Bitcoin Reserve and United States Digital Asset Stockpile.  
     (a)  The Secretary of the Treasury shall establish an office to administer and maintain control of custodial accounts collectively known as the “Strategic Bitcoin Reserve,” capitalized with all BTC held by the Department of the Treasury that was finally forfeited as part of criminal or civil asset forfeiture proceedings or in satisfaction of any civil money penalty imposed by any executive department or agency (agency) and that is not needed to satisfy requirements under 31 U.S.C. 9705 or released pursuant to subsection (d) of this section (Government BTC). Within 30 days of the date of this order, each agency shall review its authorities to transfer any Government BTC held by it to the Strategic Bitcoin Reserve and shall submit a report reflecting the result of that review to the Secretary of the Treasury.  Government BTC deposited into the Strategic Bitcoin Reserve shall not be sold and shall be maintained as reserve assets of the United States utilized to meet governmental objectives in accordance with applicable law

so for clarity
so it actually is going to be a bitcoin strategic reserve .. and a separate digital asset stockpile... and not the lame combined "strategic crypto reserve" notion..

and by the first week of april there will be knowledge of each departments ability and authority to potentially move the coin, .. basically nothings moving this month, just a report about ability to move coin

 (c)  The Secretary of the Treasury and the Secretary of Commerce shall develop strategies for acquiring additional Government BTC provided that such strategies are budget neutral and do not impose incremental costs on United States taxpayers.  However, the United States Government shall not acquire additional Stockpile Assets other than in connection with criminal or civil asset forfeiture proceedings or in satisfaction of any civil money penalty imposed by any agency without further executive or legislative action.  

so they will only gain altcoins via asset forfeiture, but will be able to buy extra bitcoin when the market favours the purchase. but not using tax payers money if they have a budget deficit to need to take a loan ..
in short i feel this would be when they:
sell the altcoins they purchase btc
keep btc from people paying a "crypto tax" or fine
sell a USGOV HQ building or two.
have drained the swamp enough that the treasury budget is higher than the expenditure(budget surplus)

[Woodie]

This said reserve seems to be the reason why BTC and other altcoins have taken a nose dive!!

The fact that the USA is establishing this  'Bitcoin Strategic Reserve' by using seized coins doesn't really give investor confidence based on the fact that money won't be pumped in
And with all what's happening, to avoid using taxpayers money, I hear that tariff money could be used to invest in BTC which leaves everyone in suspense mode...too much talk by POTUS tbh.

[Kazkaz27]

Just noticed this thread. Reading 👀… might update this comment.

[franky1]

This said reserve seems to be the reason why BTC and other altcoins have taken a nose dive!!

The fact that the USA is establishing this  'Bitcoin Strategic Reserve' by using seized coins doesn't really give investor confidence based on the fact that money won't be pumped in
And with all what's happening, to avoid using taxpayers money, I hear that tariff money could be used to invest in BTC which leaves everyone in suspense mode...too much talk by POTUS tbh.

while you think its not giving confidence to investors what your not realising is:
A. naive investors made the decision that trump is not buying any coin this month so they sold thinking there wont be a pump ($90k↓$85k) yesterday EO signing
B. smart investors see the dip from yesterday and see discount so buy from the sellers..  ($85k↗$90k) today

and all has been forgiven and forgotten. and that drama didnt even last 24 hours

[Woodie]

~snip~

while you think its not giving confidence to investors what your not realising is:
A. naive investors made the decision that trump is not buying any coin this month so they sold thinking there wont be a pump ($90k↓$85k) yesterday EO signing
B. smart investors see the dip from yesterday and see discount so buy from the sellers..  ($85k↗$90k) today

and all has been forgiven and forgotten. and that drama didnt even last 24 hours

Valid point!

But looking at how price is moving shows there is a tag of war between Sellers and buyers, to some extent indecision in the markets so to say as evidenced by the current ranging market's.

And btw between now and Monday,  if POTUS makes positive or negative remarks it will reflect in price and this being a weekend price momentum is going down ↓ and I see it tanking.

[Antotena]

The US primarily holds seized Bitcoin and some Ethereum. There are no seized holdings of solana, ripple, and cardano. The crypto strategic reserve is mainly btc and eth. The rest were just mentioned to pump those assets and have their insider reap gains I think...

It was all plan because look I remember the second tweets about the reserve. This was the tweet. https://x.com/trump_repost/status/1896247384923050059

I don't know even know why he didn't specifically gives the attention to Bitcoin, he clearly mentioned altcoins first and them comes back to do ETH and Bitcoin. It should have been in order like how big they are in the market but it was random. If it was him that such thing is presented to, you would have heard him say "it's disrespectful to order things that way". He loves saying that and loves to criticise people but he does not want other people to criticise him for wrong doings.

The executive order has been signed, what next? Buy Bitcoin is what everyone is expecting but I wouldn't want to lie to my self, we will be seeing more speculations than the US buying more Bitcoin. I don't even want to know why seize Bitcoin are to be strategic reserve but it's understandable, something worth money and seize becomes governments property and wait when they have plans to sell like they used to sell back then, even Germany sold everything.

[d5000]

Now what does that mean exactly, and what's is the potential?

One relatively simple solution would be to sell reserves of another asset (e.g. gold) to buy Bitcoins. Basically what Lummins has proposed.

However, I don't think this could work on a big scale, at least not now. Before such a decision is taken, the entity in charge (Finance Ministry? Fed?) would need to carefully evaluate if the asset in question is likely to perform better or worse than Bitcoin. Because if the Bitcoins perform worse than the asset which was sold, the strategy would not be neutral for the Treasury and in the end, taxpayers' money would be needed to fill resulting losses.

For example, if gold is stagnating or declining and Bitcoin is currently not in a bubble, it could be relative low-risk to purchase Bitcoins selling gold. But if Bitcoin has already grown in price for a long time, and gold is also not showing signs of decline or bubble, then the risk to run into a bear market (like El Salvador did in 2022) is quite high. The entity should also be secretive about the purchases, as otherwise they risk to create a pump and buy too expensive. The reserve hasn't the purpose to make hodlers rich and much less to be the "final greater fool" in a bubble.

The use of tariff income is in reality using taxpayers' money, because the tariff income could otherwise be used to lower existing taxes (albeit I don't think tariffs would be neutral for the taxpayers, because they also fuel inflation). I'm however not knowledgeable enough if it is "legally" possible to "evade" the prohibition to use taxpayers money this way.