Trump’s Strategic Bitcoin Reserve Removes $17B in Potential Selling Pressure From BTC, Experts Share Views

U.S. President Donald Trump signed an government order Thursday to determine a strategic bitcoin(BTC) reserve that features BTC seized by the U.S. authorities via legislation enforcement actions.

White House crypto and AI czar David Sacks stated on X that the stockpile can even embody different cash forfeited in prison or civil proceedings whereas stressing that no taxpayer cash will spent on buying BTC or different cash.

According to Arkham Intelligence, the U.S. authorities presently holds 198,000 bitcoins price about $17.3 billion. Treating the identical as reserve primarily takes out over $17 billion in promoting stress from the market.

Still, bitcoin prolonged losses, hitting lows close to $84,700, reflecting investor disappointment over the shortage of recent BTC purchases for the U.S. authorities. Prices, nevertheless, have recovered to $87,600 at press time in hopes that Trump will announce a good crypto tax coverage at Friday’s White House crypto summit.

Here is what market pundits needed to say in regards to the strategic reserve.

Valentin Fournier, analyst at BRN

“The Executive Order has disappointed some investors, as it explicitly states that the government will not acquire additional assets beyond those obtained through forfeitures. This lack of a clear acquisition plan has created confusion, weighing on market sentiment and leading to a 4% daily decline in Bitcoin, Ethereum, and Solana.”

“Commerce Secretary Howard Lutnick has been authorized to develop a budget-neutral strategy for acquiring additional Bitcoin. Given Lutnick’s strong ties to Bitcoin through his involvement with MicroStrategy, this could signal a hidden accumulation strategy by the U.S. government, potentially igniting a parabolic rally.”

Dick Lo, CEO of Quant-driven digital property buying and selling agency TDX Strategies

“Initial disappointment as the market had built up high expectations leading up to the announcement. However, the news is unambiguous positive: It would have been unrealistic to expect new buying without a plan on how it would be funded; An important distinction has been made between Bitcoin and the rest of crypto, i.e. not a single dollar will be spent buying altcoins.”

“Potential further positive announcements to come from the Crypto Summit: more favorable tax treatment towards crypto.”

Andrew O’Neill, Digital Assets Managing Director, S&P Global Ratings

“The significance of this government order is especially symbolic, because it marks the primary time bitcoin is formally acknowledged as a reserve asset of the United States authorities. Currently, the reserve will solely embody bitcoin already owned by the U.S. authorities, particularly BTC forfeited via prison or civil procedures. The order commits to holding this BTC as a reserve asset with out promoting it.

“However, the order does contemplate the possibility of acquiring additional bitcoin for the reserve, provided it can be done in a budget-neutral manner.There is no indication yet of how much, if any, would be acquired nor a timeline. The order also clearly distinguishes between bitcoin and other digital assets, which will not be included in the reserve but rather, included in a separate “stockpile.”

Jeff Anderson, head of Asia at STS Digital, said in a Telegram message:

“Market is re-pricing tail danger now that the U.S. will not be actively shopping for BTC. The BVIV [the 30-day implied volatility index] is down 6 vol factors this morning.”

This is a working listing of feedback from crypto market consultants and will likely be up to date often.