Just before Friday, March 7, when the White House Crypto Summit is supposed to take place, Bitcoin jumped back up to $92,000 after falling as low as $83,000 earlier in the week. The establishment of a strategic Bitcoin reserve by President Trump is accompanied by a precipitous decline in Bitcoin prices.
The decree doesn’t specify how the reserve will be financed, other than using the Bitcoin that the US government already owns. Without specific plans for additional accumulation or funding techniques, it is essentially just a promise to cling onto existing possessions.
The possibility that the Trump administration may establish avenues to increase its Bitcoin reserves is a topic of conversation among the crypto community. The cryptocurrency market, however, believes the government should keep its present holdings of altcoins like ADA, ETH, SOL, and XRP and not add any more.
Economist Peter Schiff made the following remarks regarding the development:
While it’s up for debate whether the government can buy more Bitcoin for the strategic reserve, the one thing the executive order makes clear is that the crypto stockpile will consist only of seized tokens, so no ETH, XRP, ADA, or SOL will be bought. So at least there’s that!
— Peter Schiff (@PeterSchiff) March 7, 2025
The price of every altcoin included in the US strategic reserves has fallen, with the exception of Bitcoin, today. While Ethereum (ETH) fell 5.83%, Solana (SOL) fell 4.76%, Cardano (ADA) fell 10.83%, and XRP held its own with a just 1.34% drop.
According to Simon Gerovich, CEO of Metaplanet, the market is downplaying the significance of Trump’s executive order for Bitcoin reserves, even though the price of Bitcoin is plummeting, Coingape shares.
Gerovich claims that the directive gives the Treasury and Commerce Secretaries the power to figure out how to procure more Bitcoin without increasing the burden on American taxpayers financially. Furthermore, he stated:
“The Executive Order is more aggressive than expected. This provision paves the way for substantial Bitcoin accumulation without burdening the national budget.”
Also, Gerovich laid out two ways a strategic Bitcoin reserve may be put into action. Among them are:
- Exercise of Presidential Power: Buying Bitcoin right away with the net assets of the Exchange Stabilization Fund, which are currently around $39 billion.
- Congressional Approval: In a budget-neutral framework, Senator Lummis has suggested a Bitcoin bill that would allow the government to buy 200,000 BTC annually for five years through the revaluation of gold.
Eleanor Terret, a writer for Fox Business, went on to say, “So Donald Trump’s Executive Order calls for two separate things — a US strategic reserve and a stockpile. The key difference between the reserve and the stockpile is that the government will not actively look for ways to purchase more of the assets contained in the stockpile. It will only explore using government funds (if they can find budget neutral ways to do that) on buying BTC”.
Following reserve-related activities, Crypto Czar David Sacks announced the appointment of Scott Bessent and Howard Lutnick to explore new avenues of accumulation.
Luis Gochoco is a seasoned managing editor and writer with over a decade of experience covering politics, technology, gaming, and entertainment news. With a keen eye for breaking stories and in-depth analysis, he has established himself as a trusted voice in digital journalism. Luis is one of the key forces behind the success of GameNGuide, contributing to 12 million views through engaging and high-traffic content. He also played a pivotal role in generating 8 million views on International Business Times, shaping the platform’s technology and gaming coverage.
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