US Government’s Strategic Bitcoin Reserve to Ease Market Sell Pressure
The US government’s decision to establish a Strategic Bitcoin Reserve could significantly ease market sell pressure by up to $18 billion.
Executive Order to Hold Bitcoin as Store of Value
In a recent post on X, Coinbase executive Conor Grogan estimates that federal authorities currently hold around 198,109 BTC. This new directive prevents the liquidation of these holdings, effectively removing $18 billion in potential sell-side pressure.
On March 6, US President Donald Trump signed an executive order ensuring that Bitcoin deposited into the reserve will not be sold. Instead, it will serve as a store of value, similar to a “digital Fort Knox.”
Policy Shift Following Concerns Raised by White House Advisor
This policy shift follows concerns raised by White House AI and Crypto advisor David Sacks, who argued that the US government may have lost out on $17 billion by offloading Bitcoin instead of holding it long-term.
Retaining Confiscated Digital Assets
With this executive order in place, federal agencies must retain confiscated digital assets as a long-term store of value rather than selling them.
US Government’s Digital Asset Holdings
Data from Arkham Intelligence indicates that the US government controls roughly $18 billion in digital assets. This includes:
- Bitcoin worth $17.49 billion
- 56,035 ETH valued at $122 million
- $122 million in Tether (USDT)
- $66 million in Wrapped Bitcoin (WBTC)
- $24 million in Binance Coin (BNB)
