🔊 On March 7, 2025, President Donald Trump signed an executive order to establish a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile. Here are some important details about this event:

### Key Details about the Strategic Bitcoin Reserve

- Created Reserve: The executive order establishes the creation of a Strategic Bitcoin Reserve, which will be funded by Bitcoin held by the government, seized through criminal or civil asset forfeiture procedures. This Bitcoin will not be sold, serving as a reserve of value similar to digital gold.

- Accounting and Value: The order also mandates comprehensive accounting of digital assets held by the federal government, estimating approximately 200,000 Bitcoins. A Digital Asset Stockpile will also be established to include other confiscated digital assets.

- Purpose: The goal of this initiative is to maximize the value of government holdings in digital assets and position the U.S. as a leader in the cryptocurrency space.

### Impact on the Cryptocurrency Market

- Initial Rally: The announcement generated anticipation and a brief increase in cryptocurrency prices, with Bitcoin initially reaching over $94,000.

- Rapid Decline: However, this increase was temporary, followed by a decline in the price of Bitcoin to around $84,600, triggered by announcements of a 25% tax on imports from Canada and Mexico.

- Correlation with Risk Assets: The price of Bitcoin was influenced by the overall negative sentiment in the market, correlating with traditional tech stocks, which led to increased volatility.

- Market Trends: In the last month, the total market capitalization of crypto has declined by over 20%, from $3.6 trillion to $2.8 trillion, influenced by hacking incidents, trade tensions, and increased negative sentiment among investors.

For more details and sources, you can check the following links:

1. White House – Executive Order

2. Fox Business – Crypto Reserve

3. Economic Times – Executive Order