According to a tweet by crypto czar David Sacks, US President Donald Trump has signed an executive order to establish a strategic Bit reserve. This reserve will be capitalized with Bit owned by the federal government, meaning the US government will not spend money to buy additional cryptocurrencies. Bit plummeted to $84K, and the previously mentioned reserve tokens ETH, SOL, XRP and ADA all crashed across the board.
Just a few minutes ago, President Trump signed an Executive Order to establish a Strategic Bit Reserve.
The Reserve will be capitalized with Bit owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings. This means it...
— David Sacks (@davidsacks47) March 7, 2025
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ToggleEarly sale of Bit resulted in $17 billion loss, stored in the reserve and will never sell again!
Sacks stated that the US government is estimated to own around 200,000 Bits; however, a full audit has never been conducted. The executive order directs a comprehensive accounting of the federal government's digital asset holdings.
Going forward, the US will not sell any Bit stored in the reserve. It will be used as a store of value. This reserve will be like a "digital gold fortress" for cryptocurrencies.
The premature sale of Bit has already cost US taxpayers over $17 billion in value. Now, the federal government will have a strategy to maximize the value of its held assets.
Will increase Bit, but will not increase the cost to US taxpayers
The Treasury Secretary and Commerce Secretary are authorized to develop budget-neutral strategies to acquire more Bit, provided these strategies do not increase the cost to US taxpayers.
Establish a US digital asset reserve to store other confiscated digital assets
Additionally, the executive order also establishes a US digital asset reserve, composed of digital assets other than Bit forfeited through criminal or civil proceedings.
However, the government will not acquire assets for the reserve beyond what is forfeited through these proceedings.
The purpose of the reserve is to responsibly manage the government's digital assets under the administration of the Treasury Department.
Promises fulfilled, the US is moving towards the crypto capital of the world
Sacks stated that President Trump has delivered on his promises to establish a strategic Bit reserve and a digital asset reserve. These commitments have been fulfilled, also demonstrating President Trump's dedication to making the US the "crypto capital of the world".
Bit plummeted to $84K, ETH, SOL, XRP and ADA crashed across the board
The crypto community, who had been eagerly anticipating that the government's crypto reserve would be funded by tariffs or other sources, were dismayed to hear this news and proceeded to sell off their holdings.
Bit briefly plummeted to $84,667. This also triggered a sell-off in other cryptocurrencies, especially the mentioned ETH, SOL, XRP and ADA, which dropped by 4%, 5.3%, 7.4% and 8.9% respectively within an hour.
Risk Warning
Cryptocurrency investment carries high risks, and its price may fluctuate dramatically. You may lose your entire principal. Please carefully evaluate the risks.
