March 7, 2025
U.S President Donald Trump signing of an executive order establishing a Strategic Bitcoin Reserve on Friday, triggered a 5% drop in the price of Bitcoin.
According to report monitored on Nairametrics, Bitcoin’s value fell by 4.63% to $87,925 as of Friday morning, with other digital tokens such as Ethereum, XRP, Cardano, and Solana also dropped by up to 5%.
Trump’s executive order introduced a “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile” to centralize government-held cryptocurrencies. According to billionaire David Sacks, these reserves will primarily consist of digital assets seized through criminal and civil forfeiture cases.
He described the reserve as a “digital Fort Knox,” stating Bitcoin’s role as a store of value comparable to “digital gold.”
Sacks, explained in a statement on social media platform X, that “The Secretaries of Treasury and Commerce are authorized to develop budget-neutral strategies for acquiring additional Bitcoin, provided that those strategies have no incremental costs on American taxpayers.”
In addition, the executive order called for a full accounting of the federal government’s digital asset holdings, which are estimated at 200,000 BTC—worth approximately $17.7 billion.
READ MORE; Trump Threatens, Gives Hamas Ultimatum to Release Israeli Hostages.
“Premature sales of Bitcoin have already cost U.S. taxpayers over $17 billion in lost value. Now, the federal government will have a strategy to maximize the value of its holdings,” Sacks noted.
While signing the order, President Trump, remarked, “Made the promise, right?” as shown in a video shared online.
CoinSwitch co-founder Ashish Singhal commended the decision to build Bitcoin reserves without relying on taxpayer funds, which to him is a step towards embracing the future of digital finance.
“While the market initially reacted with mixed signals, the long-term implications are undeniably bullish—clearer regulations, reduced uncertainty, and a stronger foundation for institutional adoption,” he stated.
READ MORE; Trump’s stoppage Of Aids May Stall Nigeria’s HIV, Malaria Programmes
The Strategic Bitcoin Reserve initiative, stems from a campaign promise Trump made in July 2024 to establish a federal Bitcoin stockpile.
A March 6 fact sheet released by the White House further details the creation of a “U.S. Digital Asset Stockpile,” which will include cryptocurrencies other than Bitcoin.
However, Sacks clarified that the stockpile’s purpose is to ensure “responsible stewardship of the government’s digital assets” under the Treasury Department and confirmed that no additional assets will be purchased for the stockpile beyond those acquired through forfeiture proceedings.
The US currently owns about $16.4 billion worth of Bitcoin and about $400 million worth of seven other tokens, largely attributable to asset forfeitures related to civil and criminal cases, Bloomberg reported.
