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Bitcoin plunged 4% as an executive order signed by US President Donald Trump to set up a Strategic Bitcoin Reserve and a Digital Asset Stockpile underwhelmed investors ahead of the first White House crypto summit later today.
The Strategic Bitcoin Reserve will consist of about 200,000 Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings, said Trump’s crypto and AI czar David Sacks in a March 7 post on X.
The Digital Asset Stockpile will consist of cryptos other than Bitcoin that were forfeited in criminal or civil proceedings, and the government will not acquire additional assets for it beyond those obtained through forfeiture proceedings, Sacks added.
“This is the most underwhelming and disappointing outcome we could have expected for this week,” said Charles Edwards, founder of digital asset hedge fund Capriole Investments, in a post on X. ”No active buying means this is just a fancy title for Bitcoin holdings that already existed with the Govt. This is a pig in lipstick.”
This is the most underwhelming and disappointing outcome we could have expected for this week. But also not surprising. Looks like no tangible BSR in 2025. No active buying means this is just a fancy title for Bitcoin holdings that already existed with the Govt. This is a pig in… https://t.co/KBxUkd83G8
— Charles Edwards (@caprioleio) March 7, 2025
US To Create A Digital Fort Knox
The government will look to create “budget-neutral” strategies that can be used to acquire more Bitcoin without any incremental costs for American taxpayers, Sacks said.
He added that the BTC in the Strategic Bitcoin Reserve will not be sold, with the US aiming to create a “digital Fort Knox.”
Sacks slammed previous governments for selling seized Bitcoin.
“Premature sales of bitcoin have already cost U.S. taxpayers over $17 billion in lost value,” he said.
Crypto Market Plunges As Sacks Says No Upcoming Buys For Strategic Bitcoin Reserve
Bitcoin fell nearly 5% to below $85,000 in the minutes following the executive order and Ethereum (ETH), XRP, Cardano (ADA), and Solana (SOL) all slumped.
Bitcoin has since pared losses and trades at $88,029.94 as of 1:25 a.m. EST, according to CoinMarketCap.
The overall crypto market cap has plummeted almost 3.4% in the past 24 hours to $2.89 trillion.
Sacks said that as part of Trump’s executive order, the first full audit of the federal government’s digital asset holdings will be performed.
Trump’s executive order was signed ahead of the first White House crypto summit later today. It brings together more than two dozen crypto industry heavyweights, including Bitcoin maxi Michael Saylor and Coinbase CEO Brian Armstrong, to discuss the way forward for the industry.
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