$17 Billion Bitcoin Reserve Could Trigger Global Rush, Says Bitwise Research Head
The United States has entered the Bitcoin arena with a $16.6 billion reserve, a move perceived as it could redefine global markets.
On March 6, 2025, President Donald Trump signed an executive order establishing a Strategic Bitcoin Reserve, starting with 200,000 BTC—seized from criminal and civil forfeiture cases.
Ryan Rasmussen, head of research at Bitwise Asset Management, argues this step, announced amid a Bitcoin market cap of $1.73 trillion, could catalyze a worldwide rush for the asset.
His analysis, shared on X on March 7, 2025, suggests a transformative impact on adoption and legitimacy. Let’s examine the facts driving this development.
Strategic Reserve: A $16.6 billion Commitment
Trump’s order, enacted on March 6, 2025, allocates 200,000 BTC to a national reserve. White House crypto czar David Sacks confirmed the funding source: assets confiscated through legal proceedings.
“This incurs no taxpayer expense,” Sacks stated in a March 6, 2025, briefing, emphasizing fiscal neutrality. The reserve represents 0.95% of Bitcoin’s 21 million total supply. This is a sizable stake for a known government entity.
He contends that the U.S. Bitcoin reserve could prompt other nations to acquire BTC. “The goal isn’t U.S. domination of Bitcoin holdings,” he wrote, “but a signal that forces global action.”
Matt Hougan, Bitwise’s chief investment officer, echoed this in a March 4, 2025, analysis, noting early adopters like El Salvador (2,381 BTC), Bhutan (undisclosed), and Abu Dhabi (undisclosed). Hougan asked, “If Honduras or Qatar sees the U.S. and peers move, can they afford to lag?” per his report.
Financial Institutions Poised to Respond
The reserve could alter institutional behavior. Rasmussen highlighted that regulatory uncertainty has deterred wealth managers, pension funds, and endowments from Bitcoin.
With the U.S. holding 200,000 BTC, that barrier is weakening. “This legitimizes Bitcoin as a strategic asset,” he posted on X. The White House fact sheet from March 6, 2025, authorizes Commerce and Treasury Secretaries to explore additional BTC acquisitions, provided they remain budget-neutral, reinforcing this shift.
Rasmussen also addressed a key concern in his post: the risk of a U.S. sell-off destabilizing Bitcoin’s price. “A reserve makes a ban impossible,” he wrote, estimating the probability at “definitively zero.” The $16.6 billion suggests accumulation, not liquidation.
Hougan’s analysis framed the reserve as a global signal. “The most critical audience is abroad,” he wrote, citing nations like Russia and China as potential responders.
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$17 Billion Bitcoin Reserve Could Trigger Global Rush, Says Bitwise Research Head
The United States has entered the Bitcoin arena with a $16.6 billion reserve, a move perceived as it could redefine global markets.
On March 6, 2025, President Donald Trump signed an executive order establishing a Strategic Bitcoin Reserve, starting with 200,000 BTC—seized from criminal and civil forfeiture cases.
Ryan Rasmussen, head of research at Bitwise Asset Management, argues this step, announced amid a Bitcoin market cap of $1.73 trillion, could catalyze a worldwide rush for the asset.
His analysis, shared on X on March 7, 2025, suggests a transformative impact on adoption and legitimacy. Let’s examine the facts driving this development.
Strategic Reserve: A $16.6 billion Commitment
Trump’s order, enacted on March 6, 2025, allocates 200,000 BTC to a national reserve. White House crypto czar David Sacks confirmed the funding source: assets confiscated through legal proceedings.
“This incurs no taxpayer expense,” Sacks stated in a March 6, 2025, briefing, emphasizing fiscal neutrality. The reserve represents 0.95% of Bitcoin’s 21 million total supply. This is a sizable stake for a known government entity.
He contends that the U.S. Bitcoin reserve could prompt other nations to acquire BTC. “The goal isn’t U.S. domination of Bitcoin holdings,” he wrote, “but a signal that forces global action.”
Matt Hougan, Bitwise’s chief investment officer, echoed this in a March 4, 2025, analysis, noting early adopters like El Salvador (2,381 BTC), Bhutan (undisclosed), and Abu Dhabi (undisclosed). Hougan asked, “If Honduras or Qatar sees the U.S. and peers move, can they afford to lag?” per his report.
Financial Institutions Poised to Respond
The reserve could alter institutional behavior. Rasmussen highlighted that regulatory uncertainty has deterred wealth managers, pension funds, and endowments from Bitcoin.
With the U.S. holding 200,000 BTC, that barrier is weakening. “This legitimizes Bitcoin as a strategic asset,” he posted on X. The White House fact sheet from March 6, 2025, authorizes Commerce and Treasury Secretaries to explore additional BTC acquisitions, provided they remain budget-neutral, reinforcing this shift.
Rasmussen also addressed a key concern in his post: the risk of a U.S. sell-off destabilizing Bitcoin’s price. “A reserve makes a ban impossible,” he wrote, estimating the probability at “definitively zero.” The $16.6 billion suggests accumulation, not liquidation.
Hougan’s analysis framed the reserve as a global signal. “The most critical audience is abroad,” he wrote, citing nations like Russia and China as potential responders.
Read More