#BitcoinPolicyShift Market Experts React to Trump’s Bitcoin Reserve Plan, Removing $17 Billion in Selling Pressure
U.S. President Donald Trump has made waves in the financial world by signing an executive order to establish a Strategic Bitcoin Reserve—a move that fundamentally alters how the government handles confiscated cryptocurrency. This reserve, built solely from Bitcoin (BTC) seized through legal actions, is being hailed as a game-changer. However, while some market analysts see long-term potential, others are expressing mixed reactions over the lack of immediate BTC acquisitions.
A $17 Billion Shift in Market Dynamics
According to Arkham Intelligence, the U.S. government currently holds 198,000 BTC, valued at approximately $17.3 billion. By treating these holdings as a reserve asset, the executive order effectively removes $17 billion worth of potential Bitcoin selling pressure from the market.
Despite this, Bitcoin initially extended its losses, hitting a low near $84,700—a sign that some investors were hoping for an announcement about new BTC acquisitions rather than just a policy shift. However, the market quickly rebounded to $87,600, as speculators anticipate that Trump could introduce crypto-friendly tax policies at an upcoming White House Crypto Summit.
Expert Opinions: A Divided Market Response
Valentin Fournier, Analyst at BRN
"Many investors were left disappointed because the executive order does not include any provisions for direct Bitcoin purchases. Since the government will only hold confiscated assets, there’s uncertainty over future acquisitions, which has weighed on market sentiment, leading to a 4% drop in Bitcoin, Ethereum, and Solana."
However, Fournier notes that Commerce Secretary Howard Lutnick has been granted authority to develop a budget-neutral strategy for acquiring Bitcoin. Given Lutnick’s deep ties to MicroStrategy—a company known for aggressive BTC accumulation— this could signal an under-the-radar accumulation strategy, potentially fueling a future Bitcoin rally.
Dick Lo, CEO of TDX Strategies
"There was initial disappointment because expectations were too high. Many investors assumed the government would start actively buying Bitcoin, but without a clear funding plan, that was unrealistic. That said, this move is still incredibly bullish: Bitcoin is now being treated as a strategic asset, separate from other cryptocurrencies, and no government money will be used to buy altcoins."
Lo also hints that upcoming announcements from the Crypto Summit could include tax incentives for crypto holders, adding further bullish momentum.
Andrew O’Neill, Digital Assets Managing Director at S&P Global Ratings
"Symbolically, this executive order is a turning point—it is the first time Bitcoin has been officially recognized as a reserve asset of the U.S. government. While the reserve only includes Bitcoin confiscated through legal actions, the government has committed to holding, not selling, these assets—a critical shift in policy."
O’Neill highlights that the order leaves room for future Bitcoin acquisitions, provided they are conducted in a cost-neutral manner. However, there are no specifics yet on how, when, or how much additional Bitcoin could be added to the reserve.
Notably, the order also makes a clear distinction between Bitcoin and other cryptocurrencies: while Bitcoin will be treated as a reserve asset, all other seized digital assets will be placed in a separate “stockpile.”
Jeff Anderson, Head of Asia at STS Digital
"Markets are now adjusting to the reality that the U.S. will not be actively purchasing Bitcoin. The Bitcoin Volatility Implied Index (BVIV) dropped 6 points this morning as traders recalibrate their risk models."
What’s Next?
As the market processes this historic policy shift, attention is turning to Trump’s upcoming Crypto Summit. If the administration unveils tax incentives or regulatory clarity for crypto investors, it could inject fresh optimism into the market.
While some investors were hoping for immediate government Bitcoin purchases, the long-term impact of recognizing BTC as a strategic reserve asset could be profound—potentially cementing Bitcoin’s role in the U.S. financial system for years to come.
