This morning's major news in the crypto market is that Trump has officially signed an executive order to establish a US Bitcoin strategic reserve and digital asset reserve. According to the explanation of crypto czar David Sacks on X, the Bitcoin reserve will use about 200,000 Bitcoins that the federal government has obtained through criminal or civil forfeiture, and the Treasury Secretary and Commerce Secretary have also been authorized to develop a budget-neutral strategy to acquire additional Bitcoins without increasing the cost to US taxpayers.
The far-reaching impact of the US Bitcoin strategic reserve landing
Although the news came out, the price of Bitcoin seems to have fallen below $85,000 (currently back to around $88,000) due to the fact that the Trump administration did not buy Bitcoin through gold or additional channels, which did not meet market expectations, and the potential buying demand needs more time to confirm (if the Treasury Department wants to buy more Bitcoins, it may also need Congressional approval).
However, in the long run, this is a big positive for Bitcoin, after all, the US as the world's largest economy has a huge impact on the global financial market. Now that it has officially decided to use Bitcoin as a strategic reserve, it is likely to accelerate other countries' assessment of the need to hold Bitcoin reserves, which is expected to further drive up its price.
Legal concerns?
On the other hand, what needs to be continuously observed in the future is that although Trump signed an executive order to establish a Bitcoin reserve, which can bypass the possible opposition from Congress and push it forward as quickly as possible, there are also concerns, because his executive order may also be overturned and modified by the next president, so its sustainability is not as stable as being established through federal legislation.
Congress legislation is time-consuming
Previously, it was reported that Republicans and Democrats in the US House of Representatives are jointly establishing a congressional cryptocurrency core group, and if Bitcoin wants to go through the congressional legislative route, this group will need to conduct policy research and feasibility assessment after which the bill must be submitted to Congress and reviewed by the Senate Banking Committee, and then it needs to go through the Senate, the House of Representatives, and be signed by the President to complete the legislation.
Needless to say, this process will definitely be time-consuming, as not every legislator has a friendly attitude towards cryptocurrencies. It may not be until 2026, 2027 or even later that it will be implemented, but the advantage is that it can obtain a more stable and lasting Bitcoin reserve law.
Will other countries also launch a Bitcoin reserve war?
Another point worth observing is whether other countries and companies will follow the US to launch a Bitcoin reserve war?
This move by the US is likely to stimulate other countries to accelerate their assessment of the role of Bitcoin. Russia has legalized Bitcoin mining and international payments in 2024, Switzerland is considering a referendum to include Bitcoin in its reserves, and Poland and Germany also have similar proposals.
The corporate Bitcoin buying frenzy sparked by MicroStrategy is also expected to gain further momentum. However, BlockTempo also reminds that the current global economic situation has a lot of uncertainty, and whether Bitcoin can rise against the trend in the short term remains to be seen. Investors are advised to manage risks well and continue to witness how this "global Bitcoin arms race" will affect the global economic landscape.
