- Bitcoin price dipped 5% to hit $85,000 on Monday, as skittish sentiment around US Non-Farm Payrolls overshadowed active bullish catalysts.
- Trump’s newly appointed Crypto Czar, David Sacks, blamed the past Biden-led administration for selling off 195,000 BTC.
- Trump confirmed an executive order mandating expropriated BTC be added to the national strategic reserve.
Bitcoin price dipped 5% to hit $85,000 on Monday, as skittish sentiment around US Trade policy and Non-Farm Payrolls data introduced fresh volatility ahead of the White House Crypto Summit. However, a recent Bitcoin Strategic reserve announcement from Trump's Crypto Czar David Sacks could spark more gains.
Bitcoin price dips amid skittish sentiment surrounding US Non-Farm Payrolls
On Monday, Bitcoin's price experienced a 5% decline, reaching $85,000. This downturn is attributed to investor apprehension surrounding the upcoming U.S. Non-Farm Payrolls report. Market participants often view this report as a key indicator of economic health, influencing monetary policy decisions.
Bitcoin Price Action (BTCUSDT), March 7
The anticipation of potential inflation-inducing metrics in employment figures has led to cautious trading, overshadowing existing bullish catalysts within the cryptocurrency markets, including optimism surrounding President Trump’s latest announcement easing tariff measures and establishing a new Bitcoin strategic reserve.
Still, the longer lower shadow on the latest 12-hour candle stick suggests BTC has strong support around the $85,000 level.
David Sacks criticizes Biden administration for 195,000 BTC sell-off
David Sacks, recently appointed as the White House's AI and Crypto Czar, has publicly criticized the prior Biden administration for the sale of 195,000 BTC.
Sacks alleges that this substantial sell-off negatively impacted Bitcoin's valuation and market stability.
He argued that such actions undermined the potential benefits of integrating cryptocurrencies into the national financial framework.
Sacks emphasizes the need for a strategic approach to digital assets, aligning with current administration policies to bolster the U.S.'s position in the global crypto market.
Trump signs executive order establishing strategic Bitcoin reserve
Hours after issuing a statement berating the past administration, Sacks confirmed that President Donald Trump has signed an executive order to establish a strategic Bitcoin reserve.
This initiative mandates that Bitcoin acquired through criminal or civil asset forfeiture proceedings be retained by the government, creating a "digital Fort Knox."
The reserve aims to store value and support the growth of the cryptocurrency industry without incurring additional taxpayer costs.
The executive order also includes the creation of a U.S. Digital Asset Stockpile to hold other seized cryptocurrencies, reflecting the administration's long-term commitment to the sector.
Notably, with Bitcoin trading around $87,000 at press time, this news failed to lift prices significantly.
This is due to the caveat that the US will not purchase any Bitcoin from the market, but rather stockpile BTC seized in criminal proceedings.
Key takeaways from Trump’s latest Bitcoin Strategic Reserve announcement
- BTC acquisition through forfeitures
President Trump’s new executive order establishes a government-controlled Bitcoin reserve, composed of BTC obtained through criminal or civil asset forfeitures.
- No Taxpayer Cost
The initiative does not require public funds, as it only utilizes Bitcoin already owned by the federal government.
- The US government holds an estimated 200,000 BTC
While the U.S. government is believed to own approximately 200,000 BTC, a complete audit has never been conducted. The executive order mandates a full accounting of federal digital asset holdings.
- Bitcoin reserves will not be sold
The U.S. will retain all Bitcoin deposited into the Strategic Bitcoin Reserve, ensuring it serves as a long-term store of value akin to Fort Knox.
- $17 Billion in potential Bitcoin profits lost to premature sell-offs under Biden:
Previous BTC liquidations have reportedly cost taxpayers over $17 billion in potential gains. The new strategy aims to maximize the value of holdings.
- Budget-Neutral expansion strategies:
Secretaries of the Treasury and Commerce have been authorized to explore ways to expand Bitcoin holdings, provided no additional costs are imposed on taxpayers.
- Altcoins to be separated:
The executive order also introduces a separate reserve for non-Bitcoin digital assets seized in legal proceedings, ensuring responsible government stewardship.
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