Trump Establishes Strategic Bitcoin Reserve with Seized Assets; Bitcoin Reacts

On Thursday, March 7, 2024, U.S. President Donald Trump signed an executive order to create a Strategic Bitcoin Reserve, initially funded with assets seized by the government. According to White House AI and crypto czar David Sacks, the reserve aims to be a "digital Fort Knox" and will not cost taxpayers. The order also establishes a "U.S. Digital Asset Stockpile" for other forfeited digital assets. The U.S. government currently holds 198,109 BTC, valued at approximately $17 billion. Following the announcement, Bitcoin experienced a near 5% drop to $85,000, with other cryptocurrencies like ETH, XRP, ADA, and SOL also declining. Crypto analyst Charles Edwards criticized the initiative as lacking a buying plan. However, Bitwise Asset Management's Matt Hougan suggested it reduces the chance of a government ban on Bitcoin and could encourage other nations to establish similar reserves. Bitcoin has since recovered to $90,156, marking a 0.6% decrease over the past 24 hours.