Late last week, President Donald Trump made good on a campaign promise, signing an executive order to establish a U.S. strategic Bitcoin reserve—a move he hailed as transforming America into the “Crypto Capital of the World.” The reserve, seeded with 198,000 BTC (valued at $16.1 billion) from government seizures, plus smaller holdings of Ethereum, XRP, Solana, and Cardano, was dubbed a “digital Fort Knox” by David Sacks, Trump’s newly appointed crypto czar. “We’re not selling this Bitcoin,” Sacks declared at a White House crypto summit. “It’s a store of value for the nation.”
The announcement was meant to be a game-changer, a signal that the U.S. was all-in on crypto. Instead, it landed with a thud. Bitcoin prices dropped 4.2% on Monday, March 10, to $79,300, per Forbes, as investors digested the fine print: the reserve relies entirely on existing holdings, with no plans for aggressive new purchases using taxpayer funds. “It’s underwhelming,” Jeff Mei, chief strategy officer at BTSE, told Business Insider. “The market expected a bigger splash—maybe billions in fresh BTC buys. This feels like a PR stunt.”
The disappointment stems from sky-high expectations set during Trump’s campaign, when he courted the crypto vote with promises of deregulation and a national stockpile to rival gold. Instead, the summit revealed a more cautious approach, with Sacks emphasizing “maximizing value” of the seized assets rather than expanding them. Critics, including some X users, accused the administration of favoring insiders—rumors swirled of ties between Sacks and crypto lobbying groups—over broad market support.
Enter Senator Cynthia Lummis, the Wyoming Republican and crypto evangelist, who reintroduced her BITCOIN Act on March 11. The bill proposes acquiring over 1 million BTC through “lawful means”—think forfeiture or voluntary donations—rather than direct purchases, aiming to supercharge the reserve without dipping into federal coffers. “This is about sovereignty and innovation,” Lummis said at a press conference tied to today’s Bitcoin for America event. Yet, the legislation’s vagueness—how exactly will the U.S. amass that much BTC?—left traders skeptical.
The market’s muted reaction reflects a broader reality: Trump’s crypto push, while symbolically potent, hasn’t yet translated into tangible price drivers. “It’s a long-term play,” argued Ryan Lee of Bitget Research, suggesting the reserve could bolster BTC’s legitimacy. For now, though, macro headwinds—like tariff-driven inflation fears—are drowning out the hype, leaving Trump’s grand vision on shaky ground.
