US Advances Strategic Bitcoin Reserve Plan Backed by Seized BTC
Galaxy Digital’s head of research, Alex Thorn, predicts a high probability that the US government will launch a strategic Bitcoin reserve by year-end. President Trump’s March executive order initiated the plan. A new bill instructs the Treasury to assess feasibility. Treasury Secretary Scott Bessent said seized BTC, currently valued at $15–20 billion, would seed the reserve. The Treasury is exploring budget-neutral ways to expand holdings. The growing interest in a strategic Bitcoin reserve follows similar nation-state adoptions in Pakistan, the UK, Brazil, and Japan. Some experts project a 2026 launch, while advocates warn further delays could cede ground to other countries. A US strategic Bitcoin reserve could create sustained demand for BTC and reinforce national digital asset strategy, boosting market stability. Traders should monitor legislative progress and seized coin allocations for trading signals.
Bullish
A US strategic Bitcoin reserve would inject a new, government-backed source of demand for BTC, supporting price floors and long-term stability. Seeding the reserve with seized coins valued at $15–20 billion underlines tangible asset backing. While legislative and political timelines introduce short-term uncertainty, the prospect of formal BTC holdings by the Treasury bolsters institutional confidence. Historical precedents of nation-state adoption in Pakistan, the UK, Brazil, and Japan suggest sustained demand pressure. Overall, the move is expected to be bullish for BTC, as traders anticipate increased institutional participation and reduced market volatility over the medium to long term.