Nikolas Sargeant
US President Donald Trump has signed an executive order establishing a strategic Bitcoin reserve, marking a historic moment for the world's oldest and largest cryptocurrency. Despite the significance of this announcement, the immediate market reaction sent the BTC price tumbling lower to around $87,000, down 3% on Friday.
According to White House crypto and AI czar David Sacks, the reserve will initially be capitalized by Bitcoin already owned by the federal government, estimated at around 200,000 coins. Sacks added that the Secretaries of Treasury and Commerce have been authorized to develop budget-neutral strategies for acquiring new Bitcoin.
If the market continues to view the strategic Bitcoin reserve announcement as underwhelming, it could open the door for the BTC price to align with this week's downbeat performance in the US stock market. Stocks have been under pressure amid fears about US economic weakness, attributed to DOGE austerity, Trump trade wars, and concerning GDP forecasts. The Atlanta Fed's updated GDPNow model currently forecasts a 2.4% (annualized) decline in GDP in the first quarter of 2025.
Expert Reactions
Ryan Lee, Chief Analyst at Bitget Research, said:
Tomorrow's Crypto Summit, hosted by President Trump on March 8, 2025, is poised to be a defining moment for U.S. digital asset policy, convening regulators, officials, and industry titans like Brian Armstrong and Michael Saylor. The event is expected to focus on establishing a federal regulatory framework that fosters innovation while ensuring investor protection, potentially unveiling Trump's U.S. Crypto Strategic Reserve details.
The outcomes could significantly influence the regulatory landscape and institutional sentiment toward digital assets, shifting toward clarity on token classification, tax incentives, and reduced enforcement actions, possibly dismantling barriers for banks and funds. Key market signals to watch include concrete guidelines on securities laws, the reserve's structure, regulatory leniency from figures like SEC's Mark Uyeda, and hints of legislative backing—each capable of driving a bullish surge or, if vague, sparking volatility.
A successful summit could see Bitcoin reclaim $100K and crypto assets like ETH, XRP, and Solana soar, cementing U.S. leadership in global crypto markets. Conversely, a lack of actionable steps might disappoint investors, underscoring the high stakes of this event.
Anish Jain, Founder, W Chain:
The upcoming Union Budget presents a critical opportunity to foster innovation and growth within India's burgeoning Web3 sector. We expect the government to consider President Donald Trump's establishment of the Strategic Bitcoin Reserve marks a pivotal moment for the crypto industry. Despite recent market fluctuations, this initiative underscores the growing recognition of digital assets as integral components of modern financial systems. The reserve, capitalized with forfeited Bitcoin, not only demonstrates fiscal prudence but also positions the U.S. as a leader in embracing innovation. We at W Chain believe this move will foster increased confidence and stability in the market, paving the way for further growth and mainstream adoption of cryptocurrencies.
Shivam Thakral, CEO of BuyUcoin, India's second-longest-running digital asset exchange, said:
The cryptocurrency market has experienced a decline, with Bitcoin falling to approximately $87,000. Despite this downturn, significant news activity has dominated the headlines. President Donald Trump has issued an executive order establishing a Strategic Bitcoin Reserve and a stockpile of other digital assets, which was announced just ahead of the White House crypto summit. This strategic move is anticipated to enhance market stability and foster growth within the sector. The reserve will be capitalized using Bitcoin forfeited to the government through legal proceedings, thereby avoiding additional taxpayer costs. This initiative is expected to boost investor confidence, potentially stabilize market volatility, and drive future growth by promoting increased adoption and regulatory clarity.
