A new executive order from US President Donald Trump is expected to drive more investment into Bitcoin
$85,979.65
, both from institutions and governments.
Signed on March 6, the order establishes a US Strategic Bitcoin Reserve and a National Digital Asset Stockpile.
The document explains the reasoning behind the decision, “Because there is a fixed supply of BTC, there is a strategic advantage to being among the first nations to create a strategic Bitcoin reserve”.
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Managing director for digital assets at S&P Global Ratings, Andrew O’Neill, points out that the Bitcoin in the government’s reserve will mostly come from assets seized through legal actions. He describes the decision to hold Bitcoin as “mainly symbolic”, aimed at recognizing Bitcoin as a legitimate reserve asset.
However, the executive order does allow for the possibility of adding more Bitcoin to the reserve, but only if it can be done “in a budget-neutral manner”. This means the government would need to find a way to acquire Bitcoin without affecting spending plans.
Ryan Rasmussen, head of research at Bitwise, shared a post on X, stating that this action could set off a chain reaction, with more institutions and investors gaining confidence in Bitcoin. However, he clarifies:
The end game was never ‘the US government buys all of the world’s Bitcoin’.
With official backing, he argues that banks, pension funds, and investment firms now have fewer reasons to avoid Bitcoin.
According to Rasmussen, this also reduces the likelihood of Bitcoin facing future legal restrictions. “The probability the government outlaws Bitcoin is definitively zero”, he states.
Meanwhile, Bitwise’s Chief Investment Officer, Matt Hougan, recently shared his thoughts on President Trump’s crypto reserve. What did he say? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
