US President Donald Trump signed an administrative order on March 7 to establish strategic Bitcoin Protection Zone (SBR) and “Digital Asset Reserve.” Both will initially be capitalized with cryptocurrency seized through government crimes and civil confiscation procedures, and can be acquired in the future under budget neutral conditions.
After the news was released, the price of the BTC slipped from $ 91,200 to about $ 84,667 (more than 7%), and many observers are called the classic “Sell the News”. Some market participants seem to be dissatisfied that the administrative order is not more aggressive in the purchase of Bitcoin immediately. But major industrial voices argue that the market may have misunderstood the long -term impact.
Is the strategic bitcoin disappointing?
According to David Sacks, White House AI and Crypto Czar, he announced that it has announced development through X. This protection area is capitalized as a bitcoin owned by a federal government confiscated as part of a crime or civil asset confiscation process. This means that a dime will not be paid to the taxpayer. ”
SACKS added that the United States owns about 200,000 Bitcoin. But he also said, “There was no complete audit,” he said. “EO directs the federal government’s full accounting for its digital assets.” In particular, President Trump said, “We decided not to sell Bitcoin deposited in the protection area. It will be maintained as a store of value. Reserve troops are often the same as digital port Knox of cryptocurrency called ‘digital gold’. ”
In addition, the Treasury and Commerce Ministers granted by the famous Bitcoin Bull Howard Lutnick have the authority to develop a budget neutral strategy to take over more Bitcoin. Certain methods are unclear, but this action can lead to additional US government BTC accumulation. “The Minister of Finance has the authority to develop a budget neutral strategy to acquire additional bitcoin,” SACKS wrote through X.
Apart from SBR, administrative orders set US digital asset stocks, which include seized digital assets other than BTC. According to Sacks, the stock will not be actively expanded beyond the coins obtained by the government. He explained that the purpose was to exercise the “responsible steward of the government’s digital assets according to the Treasury.”
Among the price volatility, industry leaders had an optimistic tone. David Bailey, CEO of BTC Inc, wrote in X: “The global response to the news tonight will be immediate. This is a scene from all over the world. I couldn’t be more proud of this moment, or I couldn’t be more excited about coming next. See you in the moon. ”
NIC CARTER, a general partner of Castle Island Ventures, said through X as follows. Bitcoin protection zones are clearly distinguished from Altcoin stockpiles. Bitcoin is approved for official USG. Other coins are not. Taxpayer $ has not been spent on getting coins (therefore no backlash). The future of coin acquisition would have been left in Congress. ”
Bitwise Chief Investment Officer (CIO) Matt Hougan has listed four reasons for administrative orders that have a great influence on Bitcoin.
1) The US government dramatically reduces the possibility of “prohibited” Bitcoin.
2) Dramatically increases the possibility that other countries will establish strategic bitcoin reserves.
3) Other countries accelerate the speed of considering the establishment of strategic bitcoin reserves. This is because the state creates a short -term window for additional purchases by the United States.
4) From the national account torture platform to a semi -government agency such as the IMF, it becomes much more difficult for the institution to deploy Bitcoin as dangerous or inappropriate.
The famous encryption analyst macro scope (@macroscope17) said: Not only do you actually take over more BTCs, but it’s not only actually. In the long run, the immediate seller response is more optimistic compared to market expectations until this time in the long run. ”
Analysts expect this news to ignite “national weapons race psychology.” In addition, he expects to see more 13F submissions by the sovereignty fund that waited for this announcement. “It is important to see this in the next few weeks and months,” he concluded.
In the press time, BTC was traded at $ 88,104.
DALL.E, major images made with charts on TradingView.com
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