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The White House has once again made a surprising move in the crypto world. On March 6, 2025, President Donald Trump signed an executive order designating Bitcoin as part of the United States Strategic Reserve.
The decision, announced by White House AI & Crypto Czar David Sacks via X, marks a monumental change in how the US government handles digital assets. Bitcoin, which has been confiscated in criminal and civil cases, will no longer be auctioned off, but instead stored as a national reserve—dubbed “Fort Knox Digital” by Sacks.
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Executive Order Details: Bitcoin and Digital Assets in the US Reserve
This executive order not only establishes the Strategic Bitcoin Reserve, but also establishes the U.S. Digital Asset Stockpile to hold various other crypto assets obtained from confiscations.
In his tweet, Sacks emphasized, “This reserve will be capitalized with Bitcoin belonging to the federal government that is confiscated through the process of confiscation of criminal or civil assets. This will not cost taxpayers a penny.”
He added that the US is currently estimated to have around 200,000 BTC—worth more than US$17 billion at current prices—although a full audit has never been conducted. This order mandates a complete record of government digital asset holdings for the first time.
“The US will not sell Bitcoin in this reserve. It will be a long-term store of value,” said Sacks, emphasizing Trump’s vision of making Bitcoin a strategic asset, similar to the gold reserves at Fort Knox.
However, this policy differs from Senator Cynthia Lummis’ proposal in the 2024 Bitcoin Bill, which proposes the purchase of 1 million BTC using public funds. The current federal policy avoids using the state budget, utilizing existing assets.
Market Reaction: Volatility and Speculation
The announcement immediately triggered fluctuations in the price of Bitcoin. From a level of US$91,270, the price plummeted to US$84,769 before recovering to US$87,129 in a matter of hours, according to market data on March 7, 2025.
This volatility reflects the disappointment of some investors who were expecting new Bitcoin purchases by the government, not just the storage of confiscated assets. On-chain analyst Ali Martinez noted on X, “BTC is still consolidating in a triangle pattern, preparing for a potential 20% move—up or down, depending on market sentiment.”
Support and Criticism from Crypto Figures
The move was warmly received by several industry figures. Coinbase CEO Brian Armstrong wrote on X, “I hope many G20 countries will follow US leadership in forming Bitcoin Reserves.”
Rich Dad Poor Dad author Robert Kiyosaki was also enthusiastic, “BTC sellers are losers. I’m going to buy more Bitcoin!” On the political side, Senator Cynthia Lummis called it a ‘historic moment’ in her tweet, ”The American people will remember this as the moment we seized our financial future.”
However, there is also criticism. Some economists worry that making Bitcoin—which is notoriously volatile—a national reserve could complicate the country’s financial management. Moreover, this federal policy runs counter to state initiatives such as Wyoming, which has proposed buying Bitcoin with public funds. This discrepancy begs the question: will states adapt their bills to the “no-cost” federal approach?
Global Implications and the Future of Bitcoin
With this move, the US becomes the first country to officially integrate Bitcoin into its strategic reserves, placing it as a pioneer among the G20 countries. Many speculate this could trigger a domino effect.
Domestically, this order also opens up opportunities for further regulation. Trump is scheduled to hold a “Crypto Summit” at the White House on March 7, 2025, attended by industry leaders such as Brian Armstrong (Coinbase), Brad Garlinghouse (Ripple), and Michael Saylor (MicroStrategy). The meeting is expected to discuss a “budget-neutral” strategy for additional Bitcoin acquisitions, as mandated by the executive order.
Bitcoin: From Seized Assets to “Digital Gold”
This decision changes the narrative of Bitcoin from a mere speculation tool to a national strategic asset. With more than 200,000 BTC now secured as reserves, the US is asserting its position as a leader in financial innovation.
However, challenges remain: how to maintain market stability if volatility continues to occur, and whether a full audit will reveal ownership figures that differ from estimates?
One thing is clear: the crypto world will never be the same again. Whether this is a turning point towards global adoption or just a symbolic step, only time will tell. For now, the world’s eyes are on the US—and Bitcoin.