US President Donald Trump’s embrace of crypto has led the U.S. government to spearhead a global push to establish strategic Bitcoin and crypto reserves.
Governments globally are expected to hold $75 billion in crypto reserves from assets seized from criminals.
US Government Establishing Strategic Bitcoin Reserve
Earlier this year, President Donald Trump announced the establishment of a strategic Bitcoin reserve by the government.
Also, the US government will hold other top crypto assets such as Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA) under the Digital Asset Stockpile.
Since then, the Trump administration has worked towards creating bills to direct the US Department of the Treasury to establish a Strategic Bitcoin Reserve for the secure storage of Bitcoin.
Other governments have proposed to establish strategic crypto reserves following the footsteps of the US government. This has helped towards setting Bitcoin’s legitimacy as a mainstream financial instrument.
In addition, the rising value of tokens like Bitcoin could significantly assist in overall economic growth. The supply capped at 21 million Bitcoin makes it.
Governments Could Hold $75 Billion in Bitcoin, Crypto Reserves
According to research by blockchain analytics firm Chainalysis, governments around the world could hold $75 billion in strategic Bitcoin and crypto reserves.
The figure comes from the amount of crypto tied to illicit activity currently sitting on-chain, meaning within reach of law enforcement in an online wallet or platform.
Governments will turn it into strategic crypto reserves. As the US Presidential Actions regarding the Strategic Bitcoin Reserve and the United States Digital Asset Stockpile, reads:
“The United States Government shall not acquire additional Stockpile Assets other than in connection with criminal or civil asset forfeiture proceedings or in satisfaction of any civil money penalty imposed by any agency without further executive or legislative action.”
The U.S. Treasury Secretary Scott Bessent reportedly confirmed the U.S. holds $17 billion in Bitcoin.
Also, Bessent revealed the plan to buy more Bitcoin during a private dinner with CleanSpark CEO S Matthew Schultz.
Bitcoin Price Jumps Amid Strategic Bitcoin, Crypto Reserve Plans
Bitcoin price jumped nearly 1% after the news of US government’s plans to buy more BTC. The price trades at $123,445, with a 24-hour low and high of $121,191 and $124,167, respectively.
Furthermore, the trading volume has decreased by 25% in the last 24 hours, indicating a decline in interest among traders ahead of Fed Chair Jerome Powell Speech.
CoinGlass data showed buying in the derivatives market in the last few hours. At the time of writing, the total BTC futures open interest jumped almost 2% to $90.64 billion in the last 4 hours.
BTC futures OI on CME and Binance were also climbed by more than 1.50% and 1.30%, respectively. This signals positive sentiment returning in the market.