In a historic move, former President Donald Trump has signed an executive order to establish a strategic Bitcoin reserve for the United States. This game-changing policy ensures that the government will no longer sell Bitcoin obtained through civil and criminal forfeitures. However, the decision comes after a major financial oversight, with the U.S. having already missed out on billions in potential profits due to premature Bitcoin sales.
U.S. Government’s Costly Bitcoin Mistake
According to Trump’s newly appointed Crypto Czar, David Sacks, the U.S. government had previously sold approximately 195,000 BTC over the past decade for just $366 million. If held, these assets would now be valued at over $17 billion, as Bitcoin nears the $100,000 mark. The move to create a Bitcoin reserve is seen as a course correction to prevent further financial losses.
Data from blockchain analytics firm Lookonchain reveals that the U.S. government’s public Bitcoin wallet currently holds 198,109 BTC, worth about $16.92 billion. However, historical transactions show that 222,684 BTC were transferred to exchanges and private wallets at an average price of $14,736 per BTC, totaling around $3.28 billion at the time. Given Bitcoin’s current surge, those same holdings would now be valued at $19.42 billion—translating to an estimated $16.14 billion in lost profits.
Just a few minutes ago, President Trump signed an Executive Order to establish a Strategic Bitcoin Reserve.
— David Sacks (@davidsacks47) March 7, 2025
The Reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings. This means it…
New Bitcoin Strategy: A ‘Digital Fort Knox’
The executive order aims to rectify past missteps by securing Bitcoin in what is being dubbed a “digital Fort Knox.” It also encourages federal agencies to explore ways to expand the Bitcoin reserve—so long as it does not strain the federal budget. The initiative extends to other confiscated cryptocurrencies, potentially forming a diversified crypto reserve.
Market Reactions: Crypto Prices Tumble
Following the announcement, Bitcoin experienced a sharp 5% drop, falling to $85,000. Investors seemed disappointed that the government is not purchasing additional Bitcoin but merely securing existing holdings. Ethereum (ETH), Ripple (XRP), Cardano (ADA), and Solana (SOL) also saw declines of 4%-8%, reflecting broader market uncertainty.
Also Read: Pi Coin Price Prediction: Can Trump’s Bitcoin Reserve Plan Drive PI Beyond $10?
As Bitcoin’s value continues to rise, Trump’s strategic reserve plan signals a shift in U.S. policy—potentially positioning the country as a dominant force in the digital asset space.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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