Trump Establishes Crypto Summit, Strategic Bitcoin Reserve

US President Donald Trump has established a Strategic Bitcoin Reserve and Digital Asset Stockpile, which will hold cryptocurrency forfeited to the government as part of criminal or civil proceedings, with an estimated 200,000 Bitcoin worth $17.5bn.

The reserve will include coins already owned by the government, such as those seized from past law enforcement actions, and will not involve new purchases. The move has been seen as a positive sign for the crypto industry, but some investors had hoped for more aggressive action from the government. The Treasury and Commerce secretary will develop strategies for acquiring more Bitcoin, but only if it's budget-neutral and doesn't impose additional costs on taxpayers.

The price of bitcoin fell 5% after the news broke, but has since recovered to trade at $88,949.16. Other cryptocurrencies, such as Solana and Cardano, also saw price drops. Experts say the lack of new demand and uncertainty about future government actions are preventing a significant rally in the market. The US currently owns over 198,000 bitcoins worth around $17 billion, and will not acquire additional assets beyond those obtained through forfeiture proceedings.

The government will also explore budget-neutral strategies for acquiring additional bitcoin, but this will not involve incremental costs to taxpayers. The move is seen as a positive step for the crypto industry, but some experts say it is not enough to boost the market in the short term. The President's Working Group on Digital Asset Markets will be informed of the transfers, and the Secretary of the Treasury will deliver an evaluation of the legal and investment considerations for the reserves within 60 days.

The establishment of the Strategic Bitcoin Reserve and Digital Asset Stockpile marks a significant development in the government's approach to cryptocurrency, and its impact on the market will be closely watched in the coming days and weeks.