Donald Trump signed an executive order on Thursday to establish a Strategic Bitcoin Reserve, fulfilling one of his core campaign promises.
The order also creates a US Digital Asset Stockpile, which will hold crypto assets other than Bitcoin that have been forfeited in criminal or civil proceedings.
BREAKING: @realDonaldTrump SIGNS EXECUTIVE ORDER TO CREATE STRATEGIC $BTC RESERVE BASED ON SEIZED $BTC pic.twitter.com/xGlpRiwjY4
— DEGEN NEWS (@DegenerateNews) March 7, 2025
However, the executive order fell short of market expectations, considering it did not make any provisions for the US government to buy Bitcoin or any alternative digital asset.
While the Treasury and Commerce departments can explore budget-neutral avenues to buy Bitcoin, the order explicitly states that the government will not acquire altcoins.
Crypto Prices Tumble As Strategic Bitcoin Reserve EO Falls Short of Market Expectations
Donald Trump’s US Crypto Reserve announcement last Sunday carried a distinctly bullish tone, fueling market expectations that the US government could acquire Bitcoin, Ethereum, and American altcoins like Solana, XRP, and Cardano.
However, his Strategic Bitcoin Reserve and US Digital Asset Stockpile executive order fell way short.
Initially, the Bitcoin Reserve will only comprise the near 200,000 BTC that the US government already holds. The order also calls for a comprehensive audit to determine the government’s precise BTC holdings.
While the EO did task Commerce Secretary Lutnick and Treasury Secretary Bessent to evaluate budget-neutral avenues of acquiring BTC, it wasn’t enough for the bulls.
The Bitcoin price fell by nearly 6% in the aftermath, below the $85,000 mark. Analysts suggest that the sharp decline was likely leverage-driven, with BTC now trading at $88,900 at press time.
However, the bulls need to flip the $89,000 S/R level to prevent further downside volatility.
Is The Bull Market Over?
Analysts believe that the sellers likely overreacted to the Strategic Bitcoin Reserve executive order.
The United States has officially recognized Bitcoin as a strategically important reserve asset, likening it to the gold reserves at Fort Knox. The order also eliminates the selling pressure from the US government, one of the largest BTC holders.
Crucially, the Treasury and Commerce departments have the authority to explore budget-neutral methods for acquiring Bitcoin. They may consider unveiling new initiatives ahead of the 2026 midterm elections to bolster voter support.
There is a growing consensus that the Strategic Bitcoin Reserve is extremely bullish for crypto prices in the long term.
With the financial conditions easing quickly and the global liquidity soaring, the bull market is far from over.
Best Crypto To Buy Now
Thursday’s executive order could further widen the gap between Bitcoin and the top altcoins, considering the US government can now acquire additional BTC but not the altcoins.
However, Bitcoin-themed altcoins are still in high demand. Despite most altcoins being in the red today, Bitcoin SV and Bitcoin Cash are still in the green.
BTC Bull (BTCBULL), a new BTC-themed meme coin, is also in high demand, owing to its promise of free Bitcoin.
The project is built on the assessment that the Bitcoin price is highly undervalued at $89,000 and that it will eventually hit $250,000 in the coming months. This allows the meme coin to tie itself to BTC’s long-term viability.
Now, BTCBULL holders will receive free Bitcoin airdrops, BTCBULL airdrops and token burn events whenever the BTC price hits certain set milestones.
For starters, there is a token burn event at $125k and a large Bitcoin airdrop at $150,000 — two milestones which some experts believe BTC can hit this year itself.
Unsurprisingly, BTCBULL is already in high demand during its presale, with many calling it one of the best cryptos to buy now for over 10x returns.
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