New Bitcoin Reserve Policy Could Reshape Institutional Crypto Investment
President Donald Trump signed an executive order on March 6 establishing a US Strategic Bitcoin Reserve and a National Digital Asset Stockpile. The order acknowledged that "there is a strategic advantage to being among the first nations to create a strategic Bitcoin reserve" due to Bitcoin's fixed supply.
Investment analysts and crypto industry leaders predict this move will catalyze wider Bitcoin adoption globally. Ryan Rasmussen, head of research at Bitwise, expects a cascade effect where other countries and private investors will invest in Bitcoin with renewed confidence.
Large institutional investors including wealth managers, financial institutions, and pension schemes now have "no excuse" for not increasing exposure to Bitcoin and other crypto assets endorsed by the Trump administration, according to analysts.
Rasmussen also noted that with sell pressure reduced, the probability of the US government and individual states procuring Bitcoin has increased. He stated firmly that the "probability the government outlaws Bitcoin is definitively zero."
Andrew O'Neill, digital assets managing director at S&P Global Ratings, clarified that the Bitcoin reserve will initially only include BTC already owned by the US government—assets forfeited through criminal or civil procedures.
O'Neill described the presidential order to hold Bitcoin as "mainly symbolic," formally recognizing Bitcoin as a reserve asset. The order creates a clear distinction between Bitcoin and other crypto assets while contemplating "the possibility of acquiring additional Bitcoin for the reserve, provided it can be done in a budget-neutral manner."
Ryan Lee, chief analyst at Bitget Research, told Cointelegraph he expected Trump to unveil more details about the strategic crypto reserve on March 7 at the White House crypto summit. Lee believes the summit's outcome may significantly influence:
- The regulatory landscape for digital assets
- Institutional sentiment toward crypto
- Token classification clarity
- Tax incentives
- Reduced enforcement actions
Bitcoin's response to the new economic stimulus may also be influenced by international developments. China recently announced fiscal and monetary stimulus measures aimed at boosting consumption amid trade tensions with the US. Historical data shows Bitcoin gained 12.3% last September during earlier Chinese stimulus efforts, with TradingView revealing a positive correlation between Bitcoin prices and the People's Bank of China's balance sheet over the past eight years.
