Trump Signs Executive Order to Create a “Strategic Bitcoin Reserve”

Trump and Cryptocurrencies: The White House Signs an Executive Order to Create a Strategic Bitcoin Reserve

Bitcoin fell by more than 5% following the announcement on Thursday by U.S. President Donald Trump, who signed an executive order to establish a strategic reserve of the world’s most famous cryptocurrency.

In his remarks, David Sachs, the White House’s cryptocurrency advisor, stated that the executive order aims to significantly support the cryptocurrency industry. Sachs added that the U.S. government will form a “strategic bitcoin reserve,” which is seen as a major step in supporting the digital financial system. He further explained that this reserve would serve as a “digital Fort Knox,” referring to the U.S. government’s facility where it stores its gold reserves.

Details of the Strategic Bitcoin Reserve

According to Sachs, the U.S. government currently holds approximately 200,000 bitcoins, valued at about $17.5 billion based on current prices. He added that while these assets were not purchased by the government but instead acquired through court proceedings, they will be moved into the strategic reserve, where they will be stored indefinitely.

Market Reaction to the Decision

Despite the anticipated positive impact on the cryptocurrency industry, Bitcoin experienced a noticeable decline following the announcement, losing up to 5.7% of its value. Some investors expressed disappointment over the lack of a clear government policy for purchasing cryptocurrencies in the future, leading to a decline in market confidence.

The Future of Cryptocurrencies in the United States

This move opens the door for further discussion on the future of cryptocurrencies in the United States, especially in the absence of a clear centralized policy for purchasing and storing these assets. It could mark the beginning of a new phase of regulation and government involvement in the cryptocurrency industry.

Sources:

• Statements from David Sachs, White House AI and cryptocurrency advisor.
• Reports from news agencies specializing in the cryptocurrency market.