President Donald Trump’s executive order to create and maintain US Bitcoin reserves will speed up Bitcoin’s acceptance by institutions and investors.
During the March 6 signing, Trump affirmed the value of digital assets when he said. Having an early start on setting up a Bitcoin reserve provides nations with a strong market position over other countries.
According to Bitwise research head Ryan Rasmussen, the U.S. executive order will motivate national leaders and others to put more Bitcoin into their holdings.
The end game was never “the U.S. government buys all of the world’s bitcoin.”
A U.S. Strategic Bitcoin Reserve means…
– Other countries will buy bitcoin
– Wealth managers have no excuse
– Financial institutions have no excuse
– Pensions/Endowments have no excuse
– Fear of the… https://t.co/iAoyeo3PYL— Ryan Rasmussen (@RasterlyRock) March 7, 2025
“Collections of worldwide Bitcoin never intended to become the U.S. government’s total holdings,” according to Rasmussen’s words.
Bitcoin Approval Boosts Institutional Investment Confidence
Institutional investors will increase their Bitcoin exposure after the government approves their participation. The public now sees much lower chances of regulators stopping Bitcoin activities from happening. Rasmussen feels the government will never ban Bitcoin from operating anymore.
The Managing Director of S&P Global Ratings, Andrew O’Neill, explained that the Bitcoin reserve would come from current BTC owned by US government authorities gained through criminal and civil proceedings.
According to O’Neill, the U.S. government’s decision to put Bitcoin in its strategic reserve represents the formal acceptance of Bitcoin as a strategic asset.
Bitcoin Emerges As Primary Government-Backed Digital Asset
Through this executive order, Bitcoin emerged as the only cryptocurrency with distinct value recognition compared to other digital assets. The order lets the United States government buy more Bitcoin, but this additional purchase must follow budget-friendly approaches.
Bitget Research chief analyst Ryan Lee expects the White House Crypto Summit on March 7 to detail how the U.S. will manage its Bitcoin strategic reserve. The exchange of ideas at this meeting will affect how the government handles crypto money while improving beliefs among institutions and balancing market conditions.
According to Lee, the summit’s results will determine how rules will impact tokens while creating tax benefits and decreasing law enforcement checks. These actions will help banks and financial institutions take on more crypto holdings by decreasing present restrictions.
When the United States starts buying Bitcoin many crypto fans bring up Germany’s poor handling of their Bitcoin sales during an early exit from crypto investments.
From June 19 to July 12, 2024, Germany sold 50,000 Bitcoins taken from Movie2k seized funds at an average price of about $60,000 each BTC. The transaction brought in €2.6 billion during its operation.
If Germany kept holding Bitcoin instead of selling it, it would own more than $4.45 billion today. Germany incurred estimated losses of $1.58 billion by choosing to sell its Bitcoins when the price was lower, at $88,972.
By ordering Bitcoin as a reserve asset, Trump has fundamentally changed how institutions across the world treat virtual money. Governments around the world now support Bitcoin investment more than ever, and institutions continue to join the market, strengthening its position as a strategic asset.
