Trump’s Bitcoin Executive Order Revealed – But U.S. Lost $16B from Early Sales!
Trump signs executive order
President Donald Trump has signed an executive order to create a strategic Bitcoin reserve to store assets seized by the government, as well as cryptocurrency inventory used for other digital assets. All Bitcoins obtained through civil or criminal forfeiture will be stored in “Digital Knox” at long-term value. David Sacks, Trump’s Crypto Tsar shares this in X postal.
Additionally, the order encourages officials to find ways to add more bitcoin to the reserve, as long as it does not harm the federal budget. It also requires the government to seize on other cryptocurrencies inventories.
Although Saxophone does not name specific assets, the president’s recent comments suggest which assets may be included. This move could make the United States bigger in the digital asset world.
US loses $16B due to premature sales
It is worth noting that the U.S. government has been sitting on a large amount of bitcoins and may have missed a considerable profit by selling it too early. The new executive order attempts to correct this problem by creating a reserve that will retain these assets for a long time.
according to Lookonchainthe U.S. government’s public wallet currently has 198,109 BTC, worth approximately $16.92 billion. Historically, the government has moved about 222,684 BTC to platforms such as Coinbase, Coinbase Prime and other unknown wallets. The average price of these transactions was $14,736 per Bitcoin, which totaled about $3.28 billion at the time.
However, with Bitcoin’s current market price, the same 222,684 BTC value is now worth about $19.42 billion. This means that the U.S. government lost about $16.14 billion due to the premature sale of Bitcoin.
This highlights the potential value lost as Bitcoin prices continue to rise, which intensifies the need for strategies for these digital assets to preserve at long-term value, as stated in the new executive order.
Market reaction
Shortly after the order was announced, Bitcoin fell nearly 5% to $85,000, probably because it was disappointing that the reserve only includes tokens already held by the government and there are no new purchases yet.
Ethereum (ETH), Ripple (XRP), Cardano (ADA) and Solana (Sol) (Sol) also witnessed a sharp drop of 4%-8%, as the command does not allow new purchases of these cryptocurrencies.
