US Prioritizes Strategic Bitcoin Reserve, Impacting BTC Price

A Trump administration official confirmed that establishing a Strategic Bitcoin Reserve is a top priority for the U.S., according to CoinGape. This declaration clarifies the U.S. government’s intent at a policy level, emphasizing retention over liquidation for Bitcoin already in its possession. Historically, seized Bitcoin often entered markets through auctions or direct sales, particularly during periods of market weakness, leading to unpredictable supply shocks and distorted market behavior. The new framework signals a statement of retention, lowering expectations of sell pressure from policy-driven overhangs.

The U.S. government’s shift towards retaining seized Bitcoin marks a significant change from previous practices that often saw large quantities of the cryptocurrency auctioned off. This policy, formalized through Executive Order 14233 signed on March 6, 2025, establishes the Strategic Bitcoin Reserve (SBR) to manage and expand federal Bitcoin holdings, which are estimated to exceed 300,000 BTC, valued at over $31.3 billion. These assets are primarily derived from seizures related to illicit activities.

According to Bitget News, Executive Order 14233 outlines strict rules stating that any Bitcoin seized through criminal or civil forfeiture must not be sold and instead remain as reserve holdings. This directive is intended to foster “organic market positioning” for Bitcoin, where price movements are more reliant on liquidity behavior and market structure rather than external supply shocks from government sales. CoinGape reports that Bitcoin is currently trading near $95,500, above critical support, suggesting a “structurally productive setting”. Analysts at AInvest further note that the SBR’s 20-year holding period positions Bitcoin as a strategic reserve asset, mirroring institutional strategies and reducing volatility.

The primary reason cited for this policy shift is to mitigate the market distortions previously caused by unpredictable government sales of seized Bitcoin. By establishing a clear framework for retention, U.S. authorities aim to eliminate the “policy-driven overhang” that created reactionary selling in the market. This approach is expected to enhance the technical relevance of Bitcoin’s price formation, allowing pullbacks to reflect actual demand rather than policy unpredictability. The objective is to ensure that Bitcoin’s market value reflects organic positioning and liquidity behavior.

While the policy direction is clear, the specific identity of the “Trump official” who confirmed this priority remains unnamed in the CoinGape report. Details regarding the exact timeline for fully establishing the operational framework of the Strategic Bitcoin Reserve and any further acquisitions beyond forfeited assets are also not explicitly outlined in the initial reporting. The precise mechanisms for how these reserve assets might be utilized for “governmental objectives” also remain to be detailed.

This policy is expected to contribute to greater stability in the Bitcoin market by removing a significant source of potential sell pressure. The institutionalization of Bitcoin as a reserve asset could further legitimize its role in national economic strategy and encourage broader institutional adoption. As the U.S. government consolidates its digital asset management, this framework could serve as a blueprint for other nations grappling with similar questions regarding seized crypto assets, setting a procedural benchmark for coherent federal strategies.