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In a long-anticipated move that had the crypto world abuzz for weeks, President Donald Trump officially established a U.S. Bitcoin Reserve through an executive order. The announcement, made Thursday night, was expected to send Bitcoin soaring, given Trump’s pro-crypto stance. However, rather than igniting a fresh rally, Bitcoin’s price remained flat at around $88,949.16, with a brief 5% drop following the news.

The executive order outlined the creation of the reserve, which will consist of Bitcoin already owned by the U.S. government—mostly coins seized in law enforcement actions. However, there was no mention of an aggressive purchasing plan, a factor that likely dampened market enthusiasm.

Market Expectations vs. Reality

Many Bitcoin proponents had hoped the executive order would include a clear strategy for accumulation, potentially signaling a government-backed Bitcoin buying spree. Instead, the reserve will not involve any immediate purchases beyond those obtained through forfeiture proceedings.

Steven Lubka, head of private clients and family offices at Swan Bitcoin, summed up the market’s disappointment:

“It is good news, but not what the market wanted in the short term. People were hoping for near-term buy pressure.”

Crypto traders, who had speculated on an immediate impact, dumped their holdings, sending Bitcoin briefly lower before it stabilized.

A Look at the U.S. Bitcoin Holdings

One of the key takeaways from Trump’s order is that the United States is now officially acknowledging its significant Bitcoin holdings. According to blockchain analytics firm Arkham, the U.S. government currently possesses:

• 198,000 BTC, worth approximately $17 billion
• 56 ETH, worth around $119 million

In addition to these holdings, the government has acquired other cryptocurrencies through law enforcement actions. However, data on XRP, Solana (SOL), and Cardano (ADA) remains unclear. Trump had previously mentioned these tokens in a social media post teasing the crypto reserve, but they were notably absent from the executive order.

A Budget-Neutral Approach to Bitcoin Accumulation

Unlike what many had hoped, the executive order does not direct the U.S. government to purchase Bitcoin outright. Instead, it includes a provision for budget-neutral strategies to be developed by the Treasury and Commerce secretaries. The government is open to increasing its holdings, but only if it comes at no additional cost to taxpayers.

Treasury Secretary Scott Bessent, speaking on CNBC’s Squawk Box, emphasized the administration’s stance:

“The first step is to stop selling, and then we’re going to put a plan in place from there. We’re having this Crypto Summit … this afternoon, and then we’ll talk about the way forward.”

Bessent’s comment suggests that while there may be future Bitcoin accumulation strategies, the immediate priority is to halt the selling of confiscated Bitcoin—a practice that has previously resulted in market downturns.

Crypto Market’s Reaction: A Sell-the-News Event

In the volatile world of crypto, expectations drive markets. When Trump first hinted at a Bitcoin reserve, traders hoped for a bullish catalyst that could propel Bitcoin past its all-time highs. However, the underwhelming details of the executive order triggered a sell-the-news reaction.

Broader Market Trends

Beyond Bitcoin, other major cryptocurrencies saw muted reactions:

• Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA) were off their lows, but did not rally in response to the news.
• JPMorgan analysts cautioned against expecting a big move higher in crypto, citing broader economic uncertainty and weakening demand.

The backdrop of rising inflation, tariff wars, and stock market weakness further complicated the outlook for crypto, making it unlikely that the Bitcoin reserve alone could fuel a sustained rally.

The First-Ever White House Crypto Summit

The announcement of the Bitcoin reserve came just before the first White House Crypto Summit, a high-profile event where policymakers, industry leaders, and financial experts are expected to discuss the future of digital assets in the U.S. economy.

The summit could provide more clarity on:

• How the government plans to integrate Bitcoin into its economic strategy
• The regulatory framework for digital assets
• Whether the U.S. might consider actively purchasing Bitcoin in the future

Crypto and AI Czar David Sacks: A Key Figure

A significant player in this unfolding story is David Sacks, the White House’s crypto and AI czar. In a post on X, Sacks clarified that the Bitcoin reserve will be comprised of:

• Bitcoin already owned by the U.S. government
• Other digital assets obtained through forfeiture proceedings

Sacks was quick to highlight that this move will not cost taxpayers anything, possibly in an effort to preempt criticism from lawmakers skeptical of government involvement in crypto.

What This Means for Bitcoin’s Future

The U.S. Bitcoin Reserve marks a symbolic shift in how the government views digital assets. While the announcement itself was underwhelming in the short term, it legitimizes Bitcoin as a strategic asset and sets the stage for future accumulation policies.

Could the U.S. Become the Biggest Bitcoin Holder?

If the government decides to actively accumulate Bitcoin, it could become one of the largest holders globally. Currently, the U.S. ranks among the top Bitcoin holders due to seized assets, but an official buying strategy could:

• Provide stronger institutional support for Bitcoin
• Improve long-term adoption of crypto in the U.S.
• Establish Bitcoin as a reserve asset akin to gold

For now, the market remains cautious. Until there is a clear plan for active accumulation, Bitcoin’s price may struggle to break past the $90,000 resistance level.

The Road Ahead for Bitcoin and Crypto

Trump’s Bitcoin reserve is a landmark moment, even if it fell short of market expectations. The key takeaways are:

• The U.S. is no longer selling Bitcoin from seizures, reducing market pressure.
• No immediate government purchases of Bitcoin are planned, disappointing bullish investors.
• Future accumulation strategies could emerge, but only if they are budget-neutral.
• The White House Crypto Summit could reveal additional policy details.

With Bitcoin up 6% for the week, the market remains in a wait-and-see mode. If Bitcoin can decisively hold above $90,000, bullish sentiment could return. However, until more details emerge on how the U.S. intends to manage its Bitcoin reserve, traders will likely remain cautious.

The real question now is: Will this be the first step toward Bitcoin becoming a true reserve asset, or will it remain a passive government holding?

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. CryptoDailyInfo.com is not responsible for any financial losses.