• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

Trump establishes ‘digital Fort Knox’ with US strategic Bitcoin reserve: How will the crypto market react?

by March 7, 2025
by March 7, 2025

In a significant shift in digital asset policy, US President Donald Trump has signed an executive order establishing a Strategic Bitcoin Reserve.

The move marks the first time the US government will formally hold Bitcoin as a long-term asset.

According to White House AI and Crypto Czar David Sacks, the reserve will be funded exclusively with Bitcoin seized through asset forfeiture, meaning it will not require taxpayer funding.

Sacks estimated that the government currently holds approximately 200,000 BTC, though a full audit has never been conducted.

The executive order mandates a thorough review of the federal government’s digital asset holdings and prohibits the sale of Bitcoin in the reserve, likening it to a “digital Fort Knox.”

Trump’s administration has positioned the move as part of an overarching effort to solidify the US as a leader in the cryptocurrency space.

No taxpayer burden for Bitcoin holdings

The executive order ensures that Bitcoin held by the US government will not be sold under normal circumstances, protecting it as a strategic asset.

Sacks highlighted that past government sell-offs of Bitcoin resulted in over $17 billion in lost value.

The new directive aims to prevent further financial losses by maintaining Bitcoin as a long-term holding, much like gold reserves.

Trump has repeatedly signalled his intention to make the US the “crypto capital of the world,” and this move aligns with that broader strategy.

Unlike previous administrations that auctioned off seized Bitcoin, this order effectively classifies the digital asset as a national strategic reserve, reducing supply on the open market and reinforcing its value.

In addition to Bitcoin, the executive order introduces a broader US Digital Asset Stockpile that will contain other seized cryptocurrencies, including Ethereum and XRP.

However, the order explicitly states that the government will not acquire additional crypto beyond what is obtained through asset forfeiture.

Bitcoin acquisition strategies

The Trump administration has directed the Treasury and Commerce Departments to investigate budget-neutral methods for acquiring more Bitcoin.

The focus remains on expanding the government’s holdings without imposing additional costs on taxpayers.

One proposed method involves forming public-private partnerships with US-based crypto firms to manage and grow the reserve.

This initiative marks a shift from previous government practices of selling seized Bitcoin at auction, often at a fraction of its future value.

Market analysts suggest that this change in approach could reduce volatility caused by large-scale government liquidations and further cement Bitcoin’s status as a digital store of value.

Market impact and global adoption

At press time, Bitcoin is down 3% in the past 24 hours, trading at $86,600.

The market has not yet fully responded to the announcement, but long-term implications suggest a tightening of Bitcoin’s circulating supply.

With fewer sell-offs expected from the US government, this move could strengthen Bitcoin’s position as a hedge against inflation and economic uncertainty.

Internationally, the executive order could encourage other governments to reconsider their stance on Bitcoin.

If the US successfully integrates Bitcoin into its strategic reserve, other nations may follow suit, leading to greater institutional adoption and reduced regulatory hostility.

In addition to the Bitcoin reserve, Trump signed executive actions delaying tariffs on Mexican and Canadian imports for nearly a month.

Goods covered by the USMCA trade agreement will remain tariff-free following discussions with Canadian officials and Mexican President Claudia Sheinbaum.

However, goods not covered under the agreement, such as avocados and Canadian energy exports, may still face tariffs.

As global competition for Bitcoin intensifies, the US’s decision to establish a Strategic Bitcoin Reserve represents a landmark shift in financial policy.

Whether this move will ultimately benefit the crypto market remains to be seen, but it undeniably positions Bitcoin as a key player in the future of global finance.

The post Trump establishes ‘digital Fort Knox’ with US strategic Bitcoin reserve: How will the crypto market react? appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Carvana stock price is crumbling: is it safe to buy the CVNA dip?
next post
Top FTSE 100 and FTSE 250 shares to watch next week

Related Posts

Cristiano Ronaldo joins the billionaire club, net worth...

October 8, 2025

Elon Musk’s xAI secures $20B boost as Nvidia,...

October 8, 2025

SoftBank to acquire ABB’s robotics unit for $5.4B...

October 8, 2025

European stocks open higher: CAC 40 climbs 0.11%,...

October 8, 2025

EU steel tariff surge threatens UK exports and...

October 8, 2025

Why Tata Motors stock remains in the red...

October 8, 2025

Asian markets open: Nikkei hits another record high,...

October 7, 2025

Top reasons why the Topix and Nikkei 225...

October 7, 2025

Goldman Sachs boosts 2026 gold price forecast to...

October 7, 2025

Beijing intensifies oil stockpiling amid global supply and...

October 7, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • Sateliot and Nordic Enable First 5G IoT Link from LEO Satellites

    October 8, 2025
  • Have Mount Laurel Obligations Made New Jersey Housing More Affordable? A Synthetic Control Analysis of Housing Supply and Cost

    October 8, 2025
  • Rent Control Will Make the Housing Crisis Worse

    October 8, 2025
  • Gold’s Acceleration Reveals Vanishing Calm, Coming Change

    October 8, 2025
  • Why the Erosion of Central Bank Independence Matters

    October 8, 2025
  • Cristiano Ronaldo joins the billionaire club, net worth hits $1.4B

    October 8, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025
  • 5

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 6

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 7

    Pop Mart reports 188% profit surge, plans aggressive global expansion

    March 26, 2025

Categories

  • Economy (2,816)
  • Editor's Pick (281)
  • Investing (185)
  • Stock (1,920)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Price war sidelines Tesco, Sainsbury’s from FTSE...

April 10, 2025

LIDR stock skyrockets 150% after Nvidia deal,...

July 26, 2025

Tesla struggles with India entry as bookings...

September 2, 2025