Bitcoin

Trump’s Strategic Bitcoin Reserve Removes $17B in Potential Selling Pressure From BTC, Experts Share Views

Published

2 months ago

March 7, 2025

U.S. President Donald Trump signed an executive order Thursday to establish a strategic bitcoin(BTC) reserve that includes BTC seized by the U.S. government through law enforcement actions.

White House crypto and AI czar David Sacks said on X that the stockpile will also include other coins forfeited in criminal or civil proceedings while stressing that no taxpayer money will spent on acquiring BTC or other coins.

According to Arkham Intelligence, the U.S. government currently holds 198,000 bitcoins worth about $17.3 billion. Treating the same as reserve essentially takes out over $17 billion in selling pressure from the market.

Still, bitcoin extended losses, hitting lows near $84,700, reflecting investor disappointment over the lack of new BTC purchases for the U.S. government. Prices, however, have recovered to $87,600 at press time in hopes that Trump will announce a favorable crypto tax policy at Friday’s White House crypto summit.

Here is what market pundits had to say about the strategic reserve.

Valentin Fournier, analyst at BRN

“The Executive Order has disappointed some investors, as it explicitly states that the government will not acquire additional assets beyond those obtained through forfeitures. This lack of a clear acquisition plan has created confusion, weighing on market sentiment and leading to a 4% daily decline in Bitcoin, Ethereum, and Solana.”

“Commerce Secretary Howard Lutnick has been authorized to develop a budget-neutral strategy for acquiring additional Bitcoin. Given Lutnick’s strong ties to Bitcoin through his involvement with MicroStrategy, this could signal a hidden accumulation strategy by the U.S. government, potentially igniting a parabolic rally.”

Dick Lo, CEO of Quant-driven digital assets trading firm TDX Strategies

“Initial disappointment as the market had built up high expectations leading up to the announcement. However, the news is unambiguous positive: It would have been unrealistic to expect new buying without a plan on how it would be funded; An important distinction has been made between Bitcoin and the rest of crypto, i.e. not a single dollar will be spent buying altcoins.”

“Potential further positive announcements to come from the Crypto Summit: more favorable tax treatment towards crypto.”

Andrew O’Neill, Digital Assets Managing Director, S&P Global Ratings

“The significance of this executive order is mainly symbolic, as it marks the first time bitcoin is formally recognized as a reserve asset of the United States government. Currently, the reserve will only include bitcoin already owned by the U.S. government, specifically BTC forfeited through criminal or civil procedures. The order commits to holding this BTC as a reserve asset without selling it.

“However, the order does contemplate the possibility of acquiring additional bitcoin for the reserve, provided it can be done in a budget-neutral manner.There is no indication yet of how much, if any, would be acquired nor a timeline. The order also clearly distinguishes between bitcoin and other digital assets, which will not be included in the reserve but rather, included in a separate “stockpile.”

Jeff Anderson, head of Asia at STS Digital, said in a Telegram message:

“Market is re-pricing tail risk now that the U.S. won’t be actively buying BTC. The BVIV [the 30-day implied volatility index] is down 6 vol points this morning.”

This is a running list of comments from crypto market experts and will be updated regularly.

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Bitcoin

Bitcoin Is About To Begin Outperforming Gold, Says InvestAnswers – Here’s His Timeline

Published

60 minutes ago

April 28, 2025

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A widely followed crypto analyst and trader is forecasting that Bitcoin (BTC) will start outperforming gold.

In a new video update, the host of InvestAnswers tells his 565,000 YouTube subscribers that the top crypto asset by market cap should outpace gold over the coming months, as he says the precious metal looks overextended following its parabolic rally to $3,500.

“If you look at the steady correlation between Bitcoin and Nasdaq, it is extremely tight because Bitcoin is considered a risk asset, [while] gold is considered a risk-off asset. But here, if you look at the Bitcoin/gold correlation, it fluctuates very heavily. Half the time, not correlated; half the time, it is correlated.

So there’s no signal of direct correlation and Bitcoin has already had a great post-halving, and in fact, we had hit a new all-time high before the halving, which has never happened before with Bitcoin. But its correlation with gold remains low.

Now, if I look at this chart and just like a caveman would, what do I interpret? I expect the correlation to increase with gold as the broader dynamics of the market will shift as well. I also believe gold is overbought, so I see gold mean-reverting and I see Bitcoin going up versus gold over the next six months.”

GpZcbhfWUAADzfp — Source: The Rational Root/X

InvestAnswers says a summarized interpretation of his analysis would be that the flagship digital asset is lagging behind gold and will start to outpace the precious metal during the next six months.

BTC is trading for $93,870 at time of writing, a fractional decrease during the last 24 hours while gold is valued at $3,283 per ounce, a marginal decrease on the day.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Here’s How Bitcoin Could Boost Demand for US Treasuries, According to Macro Guru Luke Gromen

Published

9 hours ago

April 28, 2025

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Veteran macro investor Luke Gromen says he likes Bitcoin (BTC) due to its potential to influence demand for US Treasuries.

In a new video update, the founder of the macroeconomic research firm Forest for the Trees (FFTT) says the Trump administration is in a position to boost demand for US bonds after the president signed an executive order creating a Strategic Bitcoin Reserve.

A Bitcoin bull market typically increases demand for dollar-pegged crypto assets, and according to Gromen, could ultimately drive demand for US Treasuries.

“Note that the Trump administration is still talking about putting T-bills (Treasury bills) into stablecoins, using stablecoins as a means to drive demand for T-bills. And obviously, they’ve talked about the Strategic Bitcoin Reserve.

Left unsaid in all of that is that the higher the Bitcoin price, the more stablecoin demand, the more T-bill demand there is…

I think the underlying theme of [the] US government desperately needs balance sheet and stablecoins and therefore Bitcoin can help the US government find balance sheet. I think that is absolutely still in play.

It’s one of the reasons why we still like Bitcoin over the intermediate longer term.”

Stablecoin issuers such as Tether and Circle predominantly rely on Treasury bills to back their coins on a 1:1 basis. As of December 2024, Tether has invested over $94.47 billion in T-bills to back USDT. Meanwhile, Circle owns $22.047 billion worth of T-bills as of February of this year to back USDC.

Additionally, two stablecoin bills that are progressing through Congress, the STABLE Act of 2025 and the GENIUS Act of 2025, require issuers to invest in T-bills and other real-world assets to back their coins.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Bitcoin

Monero’s XMR Rockets 40% as XRP Leads Crypto Majors Gains

Published

13 hours ago

April 28, 2025

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Shaurya is the Co-Leader of the CoinDesk tokens and data team in Asia with a focus on crypto derivatives, DeFi, market microstructure, and protocol analysis.

Shaurya holds over $1,000 in BTC, ETH, SOL, AVAX, SUSHI, CRV, NEAR, YFI, YFII, SHIB, DOGE, USDT, USDC, BNB, MANA, MLN, LINK, XMR, ALGO, VET, CAKE, AAVE, COMP, ROOK, TRX, SNX, RUNE, FTM, ZIL, KSM, ENJ, CKB, JOE, GHST, PERP, BTRFLY, OHM, BANANA, ROME, BURGER, SPIRIT, and ORCA.

He provides over $1,000 to liquidity pools on Compound, Curve, SushiSwap, PancakeSwap, BurgerSwap, Orca, AnySwap, SpiritSwap, Rook Protocol, Yearn Finance, Synthetix, Harvest, Redacted Cartel, OlympusDAO, Rome, Trader Joe, and SUN.

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