APREX · EST. 2026
The White House escalates its Bitcoin offensive
The Trump administration is now intensifying efforts to formalize a government Bitcoin reserve, Nasdaq Markets reports. The initiative, launched by executive order in March 2025, involves federal authorities managing seized Bitcoin holdings as a strategic national reserve — on par with gold and foreign currency reserves.
The timing is notable. Bitcoin is currently trading around $64,744 in a market characterized by caution, with the Fear & Greed Index down to 28 out of 100 — well into "extreme fear" territory.
"This is the first time Bitcoin has been formally recognized as a reserve asset by the U.S. government" — Director at S&P Global
What does the plan entail?
Following the executive order from March 2025, the reserve is not to be funded through the federal budget, but exclusively through Bitcoin seized by federal agencies — including from operations against Silk Road and Bitfinex. According to available estimates, the U.S. government already controlled around 198,000 BTC in 2025, with estimates reaching as high as 328,372 BTC by February 2026.
The goal is to transform assets derived from criminal activity into a national strategic resource without directly burdening taxpayers.
International context: Not just the U.S.
The U.S. is far from alone in exploring such reserves. El Salvador was the pioneer, holding 7,696 BTC worth around $460 million as of June 2026, according to research sources. The country consistently buys one Bitcoin per day — a strategy that has drawn criticism from the IMF due to volatility risk.
Brazil, Switzerland, Poland, and Japan are also in the exploratory phase, according to available research. Within the U.S., the state of New Hampshire became the first to establish a state-level Bitcoin reserve in May 2025.
On the corporate side, MicroStrategy has set the benchmark by building a holding of over 600,000 BTC as of March 2026 — far more than most nations.
Potential benefits: Inflation hedge and geopolitical positioning
Proponents argue that Bitcoin's fixed supply of 21 million units makes it a natural inflation hedge, analogous to gold. A director at S&P Global has described the U.S. executive order as a historic recognition of Bitcoin as a reserve asset.
Analysis firm VanEck has suggested in hypothetical calculations that a reserve of one million BTC accumulated by 2029 — assuming annual growth of 25 percent — could potentially offset $21 trillion of U.S. national debt by 2049. It is important to emphasize that this is a highly optimistic scenario based on uncertain assumptions.
Significant risks and criticism
Skeptics are not staying quiet. El Salvador's experience shows that government Bitcoin holdings can lose 50 percent of their value in a short period — as happened in the first half of 2022. Crypto analyst Nic Carter, co-founder of Castle Island Ventures, has according to available research warned that large-scale government Bitcoin accumulation could undermine global confidence in the U.S. dollar.
Other critical points include:
- Security challenges: Government systems are vulnerable to cyberattacks and insider threats
- Market impact: Large-scale government purchases could distort price mechanisms
- Centralization paradox: If major states control large portions of the supply, Bitcoin's decentralized premise is undermined
- Legal ambiguity: Who actually has custody of seized Bitcoin, and how is this audited?
Historical perspective: A pattern of state control
This is not the first time states have intervened to shape the monetary system. Historical research reveals a recurring pattern: from China's state-issued paper money in the 11th century to the U.S. centralization of banknote issuance during the Civil War. The establishment of the Federal Reserve and the abandonment of the gold standard in 1971 are more recent examples of the same dynamic.
The Bitcoin-specific paradox is that a currency designed to escape state control is now actively attracting precisely that state interest as a reserve asset.
What happens next?
With the Fear & Greed Index at 28 and Bitcoin below $65,000, market sentiment is far from euphoric. The White House's renewed push on the Bitcoin reserve is expected to generate increased political attention — but the road from executive order to actual implementation is long and depends on congressional support, legal clarifications, and market conditions.
The story is being followed by 24markets.
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