Trump's Bitcoin Reserve Order Shakes Markets, Investors Await Next Move

U.S. President Donald Trump signed an executive order establishing a strategic Bitcoin (BTC) reserve, incorporating BTC seized by law enforcement. White House crypto and AI czar David Sacks clarified on X that no taxpayer funds will be used for acquiring BTC or other digital assets.

According to Arkham Intelligence, the U.S. government holds 198,000 BTC, valued at $17.3 billion. While this removes significant selling pressure, Bitcoin prices still dipped to $84,700, later rebounding to $87,600 on hopes of pro-crypto tax policies at the upcoming White House Crypto Summit.

Market analysts responded with mixed reactions. Valentin Fournier of BRN noted that investors were disappointed as the order lacks a clear plan for new BTC purchases. However, Commerce Secretary Howard Lutnick is developing a budget-neutral acquisition strategy, which could signal long-term accumulation.

Dick Lo, CEO of TDX Strategies, called the announcement a net positive, emphasizing that expecting new BTC purchases without a funding strategy was unrealistic. He highlighted that the order distinguishes Bitcoin from altcoins, as no government funds will be used to buy non-BTC assets.

Andrew O’Neill of S&P Global Ratings stressed the symbolic importance of the order, marking the first time Bitcoin is officially recognized as a U.S. reserve asset. While additional acquisitions are possible, the order provides no timeline or specifics.

Jeff Anderson of STS Digital noted that markets are adjusting expectations, leading to a drop in implied volatility. Investors now await further developments, particularly potential tax benefits for crypto.

Trump’s executive order reinforces Bitcoin’s legitimacy as a strategic asset, but uncertainty remains regarding future government accumulation strategies.