The US government established the Strategic Bitcoin Reserve (SBR) consisting of seized Bitcoins. However, the markets were shaken by this announcement as it was expected that the government would actively buy Bitcoin. Prices dropped by over $5,000 and currently stand at $86,000 following a decrease to $88,300 on March 8 at 10:30 AM Turkish time. Investors and industry experts are discussing the long-term effects of this move.

On March 6, 2025, the US government signed an executive order to create the Strategic Bitcoin Reserve (SBR). However, this development did not create the positive impact expected in the market, and the Bitcoin price tumbled by $5,000, deepening the drop. Crypto investor and host of the Wolf of All Streets podcast, Scott Melker, analyzed the price movement and the long-term effects of the reserve.

Donald Trump announced at Nashville Bitcoin Conference in the summer of 2024 that the US government would establish a Bitcoin reserve. Concurrent with this announcement, Senator Cynthia Lummis introduced a bill proposing that the country acquire one million Bitcoins within five years. Expectations were high for Trump to implement this plan as soon as he took office. However, his inauguration speech focused solely on granting clemency to Silk Road’s founder, Ross Ulbricht, which disappointed many investors.

Following months of speculation, the Trump administration announced that the government would not buy Bitcoin actively but form a stock consisting of seized Bitcoins. This diverged significantly from Senator Lummis’ envisaged active Bitcoin purchasing strategy. The government’s reserve will grow solely with confiscated and seized assets, without the use of taxpayer funds.