US Government to Buy BTC for Strategic Reserves! What Does It Mean for the Crypto Market?

Jakarta, Pintu News – Following his earlier statement that the US government will not buy Bitcoin (BTC), the US Secretary of the Treasury, Scott Bessent, has now clarified that the country will expand its Bitcoin Strategic Reserve by using seized digital assets. This signals a major shift in US crypto policy, which might affect the market globally.

Bessent’s statement comes after intense discussions regarding Bitcoin’s role as part of the country’s digital currency reserves. While the government will not buy new Bitcoin, it will continue to collect seized digital assets to diversify the country’s reserves.

1. What is the Bitcoin Strategic Reserve?

The Bitcoin Strategic Reserve is a US government initiative to store Bitcoin as part of a digital currency reserve. With Bessent’s statement, it is confirmed that the country will not buy new Bitcoin, but will rely on seized assets to fill this reserve.

The US government plans to build this reserve by utilizing Bitcoin assets seized from illegal activities and terrorist operations. This follows President Donald Trump’s March 2025 executive order to establish a strategic Bitcoin reserve.

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2. Impact on Crypto Market

This move had a huge impact on the global cryptocurrency market. Most crypto investors and analysts see this as a move in favor of recognizing Bitcoin as a more legitimate and valuable asset. However, the market reaction could be mixed depending on how this move is implemented.

A rise in demand for Bitcoin, both from the US government and institutional investors, could strengthen Bitcoin’s (BTC) position in the market, where it has been competing with altcoins such as Ethereum (ETH), Ripple (XRP), and Solana (SOL). With more large entities recognizing the importance of Bitcoin, the price of BTC could surge higher.

3. Advantages and Risks of Government Purchases of Bitcoin

Advantages: Using Bitcoin for reserves could help reduce reliance on fiat currencies, especially amid global economic uncertainty. Government purchases of Bitcoin could also lend greater legitimacy to cryptocurrencies as a whole.

Risks: One of the main risks is the high volatility that Bitcoin often experiences. Relying on Bitcoin as a strategic reserve could be destabilizing if the price of Bitcoin experiences a sharp drop. Additionally, many are concerned that this move will only exacerbate speculation and a potential bubble in the crypto market.

4. Will the Crypto Market Be Affected?

Bessent’s statement, while not mentioning when the US government will start buying Bitcoin, suggests that this move could trigger a new wave of demand in the crypto market. If the US government acquires large amounts of Bitcoin, it could create a domino effect, encouraging more countries or large investors to follow suit.

However, the market reaction could also reverse if Bessent’s statement is just rhetoric without action. If the market responds with uncertainty or fear, we could see a short-term price correction.

5. Future Plans for the US Bitcoin Reserve

The US government is now focusing on using the seized digital assets to build up their Bitcoin reserves. In addition, Bessent also stated that this move will be done without adding new budgets or costs, namely through the “budget-neutral” method. This suggests that the purchase of Bitcoin will not cost taxpayers any money.

While the process could take some time, this policy paves the way for wider acceptance of Bitcoin and cryptocurrencies as important assets in the global financial system.

Conclusion

With the recent announcement of the Bitcoin Strategic Reserve involving seized assets, this move could be a turning point for the global crypto market. It could potentially strengthen Bitcoin’s (BTC) position as a legitimate digital currency and become more accepted at the government level. However, investors should remain wary of the volatility that could occur, both due to market reaction and the implementation of this policy.

Also Read: 7 Ethereum (ETH) Developments to Anticipate in 2025

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Kevin Helms / Bitcoin.com News. Treasury Secretary Confirms US to Acquire Bitcoin for Reserve via Budget-Neutral Tactics. Accessed August 15, 2025.