management

• US President Donald Trump has signed an executive order for the strategic Bitcoin reserve establishment. 
• The reserve would only make use of Bitcoin held by the Treasury, which data estimates to be worth around $17 billion.

In a recent update, we disclosed the inclusion of five major crypto assets – Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA) in the much anticipated US crypto reserve. Just days after, US President Donald Trump officially signed an executive order to establish a strategic reserve for Bitcoin in fulfilment of his major campaign pledge to make “America the crypto capital of the world.”

According to the report shared on X by the White House Crypto and AI czar David Sacks, the initiative will capitalize on all Bitcoin held by the Treasury that was forfeited through criminal or civil asset forfeiture proceedings. Arkham Intelligence estimates that the US owns more than 198,000 BTC ($17 billion).

Details of the Bitcoin Strategic Reserve

Analyzing the document published by the White House, we found that the US intends not to make additional acquisitions of the assets for the stockpile beyond the ones obtained through forfeiture proceedings. Additionally, Bitcoin deposited in the reserve would not be sold. Previous premature sales of the asset by the country are reported to have cost taxpayers more than $17 billion in lost value.

The order instructs the Secretary of the Treasury to create an office for the administration and maintenance control of a custodial account called the “United States Digital Asset Stockpile.”

Within 30 days of the date of this order, each agency shall review its authorities to transfer any Stockpile Assets held by it to the United States Digital Asset Stockpile and shall submit a report reflecting the result of that review to the Secretary of the Treasury. The Secretary of the Treasury shall determine strategies for responsible stewardship of the United States Digital Asset Stockpile in accordance with applicable law.

Meanwhile, the Secretary of the Treasury is expected to deliver an evaluation of the legal and investment considerations for the establishment and management of the Strategic Bitcoin Reserve as well as the United States Digital Asset Stockpile.

For effective facilitation, the heads of agencies have been asked to provide a full accounting of all Government Digital Assets in their possession to the Secretary of the Treasury and the President’s Working Group. This is expected to be submitted within 30 days after the order.

If such agency holds no Government Digital Assets, such agency shall confirm such fact to the Secretary of the Treasury and the President’s Working Group on Digital Asset Markets within 30 days of the date of this order.

Impact on the BTC Price

The market’s reaction to Trump’s groundbreaking decision has been disappointing so far. According to our market data, the asset recorded an unexpected nosedive from $90k to $84k before rebounding to $88k.

Currently, the 24-hour return of Bitcoin remains 4% down despite the trading volume surging by 12% within the same period. In an interesting twist, this aligns with our recent analysis which hints at a further decline.

Meanwhile, Trump’s announcement on Truth Social on March 2, confirming the multi-token reserve, forced a short-term price surge from $86k to $94k. As indicated in our earlier coverage, XRP, SOL, ADA, and ETH also reacted positively to this disclosure. However, all of these assets have marginally pulled back as the total crypto market cap fell by 4% to reach $2.89 trillion.

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