Trump’s Bitcoin Reserve Order Eliminates $17B in Potential Selling Pressure, Market Awaits Further Clarity

President Donald Trump has signed an executive order establishing a U.S. Strategic Bitcoin Reserve, which will consist of BTC seized through law enforcement actions and other forfeited digital assets, according to White House crypto and AI czar David Sacks.

Sacks emphasized that no taxpayer funds would be used to acquire BTC or any other cryptocurrency.

Blockchain analytics firm Arkham Intelligence estimates that the U.S. government currently holds 198,000 BTC, valued at $17.3 billion—effectively removing this supply from potential market liquidation.

Despite the news, Bitcoin extended losses, dipping to $84,700, before bouncing back to $87,600 as traders anticipated potential crypto-friendly tax reforms to be announced at Friday’s White House crypto summit.

Experts Weigh In on the U.S. Bitcoin Reserve Strategy

Valentin Fournier, Analyst, BRN:
“The executive order clarifies that the government won’t actively buy more BTC, which disappointed some investors. However, Commerce Secretary Howard Lutnick is exploring alternative acquisition methods, which could signal future accumulation.”

Dick Lo, CEO, TDX Strategies:
“This move is undeniably bullish in the long run. The U.S. has officially distinguished Bitcoin from other digital assets, signaling its recognition as a legitimate reserve asset.”

Andrew O’Neill, Managing Director, S&P Global Ratings:
“While the immediate market impact may be limited, the symbolism is huge—for the first time, Bitcoin is acknowledged as part of a U.S. strategic reserve.”

Sean Farrell, Head of Digital Asset Strategy, Fundstrat:
“This legitimizes Bitcoin at the highest level, which could encourage more institutional and sovereign adoption. The focus should now be on how other governments react.”

With further policy announcements expected, investors are closely watching how this reserve strategy evolves—and whether it sparks a global trend of governments integrating Bitcoin into their financial reserves.