Today’s market analysis on behalf of Dilin Wu Research Strategist at Pepperstone
7th March 2025
Trump’s order to establish a Strategic Bitcoin Reserve is a watershed moment—not for an immediate price surge, but for Bitcoin’s institutional legitimacy. The market had hoped for large-scale government purchases, but the policy only commits to holding existing seized assets and exploring budget-neutral accumulation. This “not selling but not buying” stance fell short of expectations, triggering a sell-off.
However, the long-term impact is far more significant. For the first time, a major economy has formally recognized Bitcoin as a strategic reserve asset. Locking up 200,000 BTC—about 1% of total circulating supply—removes a massive chunk of potential sell pressure, reshaping long-term supply dynamics. More importantly, this move sets a precedent for sovereign adoption. If other nations, especially commodity-rich economies, accelerate their Bitcoin reserves, the U.S. may be forced to respond, potentially sparking a global reserve race.
Short-term volatility aside, this policy marks a structural shift. When central banks start treating Bitcoin as a reserve asset alongside gold, that’s when real price revaluation begins.