- Trump takes first direct step to adapt Bitcoin reserve & digital asset stockpile
- Bitcoin reserve and digital asset stockpile will be settled without using taxpayer funds
Trump has taken a long-awaited step and now has signed an executive order for Bitcoin reserve & digital asset stockpile. This creates some unexpected conditions that have affected the market, more specifically the US will replenish the reserves without using taxpayer money.
More About Bitcoin Reserve & Digital Asset Stockpile
So, many crypto enthusiasts have been waiting for this for more than 10 years, namely the announcement of a national Bitcoin reserve by the world’s first economy. However, this could prove to be a powerful stimulus, albeit not instantaneous, for other key economies worldwide.
For example, Coinbase CEO Brian Armstrong responded quite optimistically to David Sacks’ post regarding the executive order on the U.S. crypto reserve, saying G20 to take notice, and eventually follow America’s leadership.
However, it didn’t quite happen as expected, which is basically what can be said about the whole Web3 adaptation. Roughly speaking, Donald Trump signed an executive order to create two crypto reserves, one for Bitcoin and the other for other key cryptocurrencies such as XRP, ADA, ETH, and SOL.
That said, the market didn’t rise up in anticipation of massive purchases along the lines of El Salvador, but instead, Trump announced that the reserves will primarily consist of the roughly 200,000 BTC tokens already held by the government, and the government will also use seized assets to replenish the reserves.
The same goes for the digital asset stockpile, which the government doesn’t plan to use taxpayer money for either, and will encourage government agencies to look for alternative ways to obtain digital assets. And overall we have a very even situation where it doesn’t provoke a bull market from waiting for purchases but also doesn’t drive us into a complete bear market explicitly signaling that it’s not going to sell.
More specifically, for example, Bitcoin fell from $95.4K to $85.5K, later recovering to $90.6 probably in anticipation of the first crypto summit that will start very soon. Bitcoin is trading at $87.5K at the time of writing.
Conclusion
Yes, we can see how even direct and immediate initiatives to adopt Bitcoin and other cryptocurrencies – take unexpected turns and no obvious effects.
And we seem to be in the midst of it, awaiting the first Crypto Summit and the series of SEC Roundtables. Be aware and stay tuned for updates on the rapidly evolving regulations and crypto landscape.
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