The US government has established a Strategic Bitcoin Reserve made up of seized Bitcoins. However, the markets were shaken by this announcement as investors and industry experts, expecting active Bitcoin purchases from the government, are now discussing the long-term impacts of this move. The US government signed an executive order to establish the Strategic Bitcoin Reserve (SBR) on March 6, 2025. However, this development did not create the positive impact expected in the market, and following a drop to below $5,000, the Bitcoin price has further plunged, now standing at $86,000 at 10:30 on March 8, Turkish time. Crypto investor and Wolf of All Streets podcast host Scott Melker analyzed the price movement and the long-term effects of the reserve.

Before the announcement of the Strategic Bitcoin Reserve, many investors were expecting the government to actively purchase Bitcoin from the market. However, it was only announced that seized Bitcoins would be maintained instead. This caused the price to drop sharply as it did not meet investor expectations. Scott Melker took a positive approach to this development, calling it a “success” in his Wolf Den newsletter and described the recognition of Bitcoin as a strategic asset by the US as “the biggest step of the US in terms of Bitcoin.” According to Melker, the US cannot risk falling behind China in terms of Bitcoin reserve, and this move will trigger competition to increase global demand for Bitcoin.

The details revealed after the announcement of the Strategic Bitcoin Reserve elicited mixed responses in the crypto community. Particularly, the fact that the government will store seized assets instead of buying Bitcoin was met with disappointment by some investors. Jeff Park from Bitwise Invest criticized the executive order, saying, “This was not a strategic move, it was a big pump-and-dump operation, and I’m glad it’s over.” On the other hand, crypto supporters generally appreciated this decision. Senator Lemmi, although her plan was not implemented, announced her support for the initiative. However, she criticized the lack of involvement of Congress in the process. A Bitcoin investor known as the “Bitcoin Therapist” on social media platform X described this executive order as the “most optimistic news seen in the last four years.” In the investor’s view, the US taking this step will accelerate the global long-term acceptance of Bitcoin.

The move by the US government to recognize Bitcoin as a strategic asset and establish a reserve made up of seized Bitcoins resonated in the global financial world. Ryan Rasmussen, the Head of Research at Bitwise Asset Management, states that this move will boost the adoption of Bitcoin, increase its legitimacy, and eliminate fears of government pressure. Concerns among some investors in the market are regarding the potential of selling Bitcoin held by the US government leading to price instability. However, Rasmussen argues that the government will continue to accumulate Bitcoin, increasing trust in the asset in the long run. He emphasizes that the likelihood of the US government banning Bitcoin is now “definitely zero.” Matt Hougan, the Chief Investment Officer (CIO) at Bitwise, also shares similar views with Rasmussen and foresees a global race to establish a Bitcoin reserve if the US recognizes Bitcoin as a strategic asset, suggesting that other countries will follow a similar path.