Tech Desk 
Mar 07, 2025
US President Donald Trump has signed an order to establish a strategic Bitcoin reserve, using cryptocurrencies already owned by the government, displeasing numerous people in the market who anticipated a direct government purchase of Bitcoin.
The news was announced ahead of a meeting with crypto executives at the White House crypto summit, leading to a significant drop in Bitcoin’s price to $85,000 before it rebounded to $89,200 the following day.
It is important to note that the reserve will comprise solely of Bitcoin, which was previously seized by the government, with no plans to acquire new tokens. However, the order enables the US commerce and treasury secretaries to explore self-funded plans for future acquisitions without imposing additional financial burdens on taxpayers.
The crypto industry had high expectations of commitment from the administration, especially after a significant hike, hitting an all-time high of $109,071 in January.
While expressing disappointment, Capriole Investments founder Charles Edwards called the reserve "just a fancy title for Bitcoin holdings that already existed with the government" and likened it to "a pig in lipstick."
Trump’s support for the cryptocurrency sector has raised concerns over conflict of interest, given that crypto companies have supported his campaign. His administration has assured that the US will not sell Bitcoin from the reserve, solidifying its position as a "digital Fort Knox."
The White House crypto czar billionaire David Sacks projected that the government currently holds up to 200,000 Bitcoin and suggested that premature sales have cost taxpayers $17 billion. However, he did not provide supporting data to substantiate this claim.
