In accordance with the presidential decree signed by US President Donald Trump on March 7, the US government will now use Bitcoin as a strategic reserve. Trump announced within a week that the Digital Asset Markets Working Group would be established and excited the crypto market. However, both the determination of 2025 as the delivery date of the working group in July and disappointment in the market after the presidential decree that did not meet the expectations.
David Sacks, the White House’s senior name in charge of artificial intelligence and crypto currencies, said in a statement that the government’s personal X (formerly twitter) said that the government’s Bitcoins seized for various crimes will not be sold. Sacks said the government has about 200 thousand BTCs held by the government, but the exact number will become clear after the inspections.
One of the remarkable points in Sacks’s statement was that US taxpayers have suffered more than $ 17 billion due to Bitcoins, which were sold early in the past by the US government. “But now there is a strategy that will maximize the assets of the federal government, Sak Sacks’s sharing, which includes the statements, continued:“ President Trump promised to create a strategic Bitcoin reserve and digital asset stock. The words given were kept. This presidential decree emphasizes President Trump’s promise to make the US crypto capital of the world. ”
What is the reason for the disappointment in the market?
Although Sacks draws a dusty painting for strategic reserves, the expectation of the market was not to sell BTCs seized. Just as it is applied in strategic reserves such as gold or oil, the market, which entered the expectation that the government would purchase Bitcoin at regular intervals, responded to Trump’s decree with a wave of sales. The depreciation in Bitcoin (BTC) reached 8 percent in just two days.
Trump announced last week in his sharing from the Truth Social account that the US strategic reserve would be BTC and ETH, as well as XRP, SOL and Island. However, the signed presidential decree includes only BTC’yi BTC’yi has brought about harsh decreases in the relevant Altcoins. XRP lost about 17 percent in the last week, 25 percent of the island, left 20 percent and ETH lost 10 percent.
What is the purpose of strategic crypto reserve?
A national crypto reserve, similar to the strategic oil reserve that protects the US economy from the problems in oil supply, will help the diversification of government assets and protect against financial risks.
The defenders of the reserve believe that the industry will strengthen the increasing value of digital currencies by trying to consolidate the crypto as long -term assets. Supporters believe that it can eventually reduce national debt.
How are the reactions to the announcement?
Tyler Winklevoss, the founding partner of the crypto currency exchange Gemini, in his sharing on the X social platform, said, “I have nothing against XRP, the left or the island, but I don’t think they are suitable for strategic reserves. Currently, only one digital being in the world welcomes this bar, and this digital being is Bitcoin ..
