Trump's Executive Order Creates Strategic Bitcoin Reserve, Bitcoin Price Drops

President Trump recently signed an executive order establishing a strategic Bitcoin and crypto reserve, which led to a significant drop in the price of Bitcoin. The order mandates that digital assets seized from criminal activities will be held by the government rather than being auctioned off, as was previously the practice. This move was widely anticipated by the crypto markets and confirmed that the executive action would not involve actively purchasing the top crypto asset.

Following the signing of the order, Bitcoin's price plummeted from $90,251 to $85,091 within an hour. However, it has since recovered to $87,202. The order aims to create a national Bitcoin and crypto stockpile by holding digital assets seized from criminal activities, which will not cost taxpayers any additional funds. It is estimated that the U.S. government owns about 200,000 bitcoins, although there has never been a complete audit. The executive order directs a full accounting of the federal government’s digital asset holdings.

The U.S. government will not sell any bitcoin deposited into the reserve; instead, it will be kept as a store of value, similar to a digital Fort Knox for the cryptocurrency often referred to as “digital gold.” Premature sales of bitcoin have already cost U.S. taxpayers over $17 billion in lost value. Now, the federal government will have a strategy to maximize the value of its holdings. The Secretaries of Treasury and Commerce are authorized to develop budget-neutral strategies for acquiring additional bitcoin, provided that those strategies have no incremental costs on American taxpayers.

In addition to the Strategic Bitcoin Reserve, the executive order establishes a U.S. Digital Asset Stockpile, consisting of digital assets other than bitcoin forfeited in criminal or civil proceedings. The government will not acquire additional assets for the stockpile beyond those obtained through forfeiture proceedings. The purpose of the stockpile is responsible stewardship of the government’s digital assets under the Treasury Department.

This executive order underscores President Trump’s commitment to making the U.S. a leader in the digital asset industry. The order fulfills Trump's campaign promise to create a Strategic Bitcoin Reserve and Digital Asset Stockpile, demonstrating his support for cutting-edge technology and the digital asset industry. The administration is moving at a rapid pace to support this sector, with the help of key figures such as Treasury Secretary Scott Bessent and Commerce Secretary Howard