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All Bitcoiners and cryptocurrency investors can finally breathe—the long-awaited election promise of a Strategic Bitcoin Reserve (SBR) has been fulfilled. Just moments ago, President Trump signed an Executive Order establishing the SBR.
Trump had pledged not to sell any of the BTC seized by previous administrations, and that promise has been kept. The SBR will be created using the 200,000 Bitcoin already held by the US government from confiscated funds.
As the SBR grows, the US will retain all Bitcoin within the reserve, holding it as a long-term store of value. Think of it as a digital Fort Knox—fitting, given that Bitcoin has long been referred to as ‘digital gold’.
But what about altcoins? The Executive Order also establishes a Digital Asset Stockpile, which will consist of forfeited or seized altcoins from criminal or civil proceedings. However, unlike the Bitcoin reserve, the government will not actively acquire more assets for the Stockpile beyond those obtained through forfeitures.
This is exactly what many crypto investors have been waiting for—official institutional and government recognition of Bitcoin’s value. This move is nothing but long-term bullish for Bitcoin and the wider crypto space.
For those who have doubted Bitcoin’s future, the creation of the SBR has solidified its position as a store of value. If the US government is doing it, why aren’t you? You’re not bullish enough...
But the market has sold off on the news. Why?
In this morning’s Morning Note, Bitcoin was trading above $90K and holding strong. The Sacks announcement was made just over 30 minutes ago, and Bitcoin has since dropped to $85K—down over 5% from earlier today.
200,000 BTC is an interesting number—last year’s proposed Bitcoin bill suggested purchasing 200K BTC annually for the next five years to build the reserve. But now that the US government already holds 200K Bitcoin, will they buy another 200K this year? Unlikely—and that’s likely why the market has sold off.
As always, this is short-term noise. The dip is creating golden buying opportunities for Bitcoin. Don’t panic—take advantage of these discounts, and contact your Stormrake Broker to act accordingly.
*All prices are denominated in USD unless stated otherwise*
Written by Alexandar Artis
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