Yesterday, Donald Trump signed the strategic Bitcoin reserve executive order – to Michael Saylor’s delight and altcoin investors’ dismay.
White House Crypto Czar David Sacks highlights that no taxpayer dollars will go toward the reserve. The entirety of $BTC in it, worth about $17B at the current price, was seized from criminals.
This makes the US government one of, if not the largest, $BTC HODLer globally, as the Treasury will not sell a single coin.
Let’s unpack the details about the strategic Bitcoin reserve and what it means for crypto.
No Tax Dollars Spent on the Strategic Bitcoin Reserve
Days ago, Trump promised to include Ethereum ($ETH), Cardano ($ADA), Solana ($SOL), and XRP ($XRP) in the strategic reserve. However, the latest executive order focuses on $BTC specifically, outlining it’ll serve as a store of value.
Trump might be eccentric and, at times, contradictory in his statements, but he surely isn’t a dabbler. His crypto policies are well-calculated, even if details remain covert until we see actual orders.
The US is now in a win-win situation: it supports innovation, gains geopolitical advantage over countries that haven’t yet embraced crypto, and avoids panic about the weakening of the dollar.
Crypto Execs Are Bullish
Bitwise CIO Matt Hougan sees the strategic Bitcoin reserve as unequivocally bullish for several reasons:
- It mitigates the risk of the government banning $BTC
- Pushes other nations to follow suit
- Legitimizes $BTC in the eyes of institutions
Brian Armstrong at Coinbase, too, considers this a ‘historic moment’ for crypto and expects G20 countries to take notice of the US strategy.
Meanwhile, crypto lawyer John Deaton (famous for his involvement in the SEC v Ripple lawsuit) points out he’d been laughed off stage if he suggested a strategic crypto reserve two years ago.
No $SOL or $XRP in the Digital Asset Stockpile – But It Does Hold Meme Coins
While the name ‘strategic Bitcoin reserve’ implicitly excludes altcoins, Trump also ordered the creation of the Digital Asset Stockpile, which will include all forfeited tokens in the hands of the Treasury.
The Treasury doesn’t plan to buy any more altcoins, with or without tax dollars. This means the likes of $XRP, $ADA, $SOL, and $ETH won’t see any government capital inflows, at least for now.
However, we know the Treasury has seized over 56K $ETH, along with 122M $USDT, 40K $BNB, and a pile of meme coins that would make any degen cry of jealousy.
There’s also no mention of altcoins being a ‘store of value,’ which suggests the government reserves the right to sell its holdings.
Having $BTC set aside for the strategic reserve while lumping other cryptos into the stockpile could establish a new market hierarchy. Such a formal distinction could influence how institutions and investors perceive different blockchain projects and reinforce $BTC’s top-dog status.
Why BTC Bull Token ($BTCBULL) Might Ride the Tide of $BTC’s Rally
Altcoins may have been put on the back burner, but innovative projects still have the potential to deliver their community substantial returns.
BTC Bull Token ($BTCBULL) might be the top new crypto to capitalize on $BTC’s inevitable rally.
This ERC-20 meme coin will reward its investors with $BTC airdrops when the King Crypto hits $150K and $200K price targets – the only requirement is to hold tokens in the Best Wallet app (which also gives you access to best crypto presales).
The project will also celebrate $BTC’s $250K record high with a massive $BTCBULL airdrop (10% of the total token supply).
Another incentive to HODL $BTCBULL is the 129% staking APY, allowing you to earn passive income from your tokens.
Thanks to its multi-faceted incentive structure, $BTCBULL raised $1M in its first days on presale. One token now costs $0.0024, but the price grows fast as the project progresses toward its fundraising goals, so now is the best time to buy $BTCBULL.
Final Remarks
A new era for the crypto industry has begun. Could you have imagined the US government would hold $BTC in 2010 when people had so little faith in it someone paid 10K $BTC for pizza?
The government’s stamp of approval is likely to spur a broader bull run, and tokens like $BTCBULL will be the first to benefit from $BTC’s new records.
However, remember that no gains are guaranteed. Always DYOR, diversify your holdings, and only invest as much as your piggy bank allows.
