4E Observation: Bitcoin Strategic Reserves Implemented, Market Divergence Widened, White House Crypto Summit in the Spotlight

The long-rumored news about the Bitcoin national strategic reserve has finally materialized. On March 7, David Sacks, the White House cryptocurrency chief, stated on X that President Trump had signed an executive order to establish a strategic Bitcoin reserve on that day. This reserve will consist of Bitcoin obtained through federal government seizures and will not increase the burden on taxpayers.

After the announcement, the price of BTC plummeted from over $90,000 to around $84,000. As of the time of writing, it has rebounded to above $87,000, with a 24-hour decline of 4.5%. The market is experiencing significant volatility, reflecting serious divisions over the policy.

Few Bearish, Many Optimistic

In the executive order signed by Trump, the funds for the strategic Bitcoin reserve will come from Bitcoin obtained through federal government criminal or civil asset seizure procedures (currently about 200,000 coins), and will not involve taxpayer funds. These Bitcoins will be regarded as a store of value and are promised not to be sold. Additionally, the order establishes a U.S. digital asset reserve for holding seized digital assets other than Bitcoin, expected to include ETH, SOL, XRP, and ADA, but the government will not actively purchase these assets.

In response, market sentiment is polarized. Some investors believe that the reserve will only acquire Bitcoin through seizure procedures and will not directly mobilize fiscal funds into the market, which is vastly different from the previous vision of "buying 1 million BTC within 5 years" for the strategic reserve. This not only fails to stimulate BTC buying but further compresses the imagination of "U.S. government policy benefits," leading to a pessimistic outlook for future trends.

However, the majority of the industry remains optimistic, believing that this executive order signed by Trump is undoubtedly an important confirmation of Bitcoin's asset status. Bitcoin being included in the U.S. strategic reserve, alongside traditional strategic resources like oil and gold, essentially grants cryptocurrency a "national-level credit endorsement," marking a fundamental leap in its asset status and leading to a historic revaluation of its value. More critically, the policy demonstration effect means that as the U.S. serves as a global trendsetter, more countries will begin to discuss similar mechanisms, triggering a wave of BTC reserves.

Moreover, the "hold and not sell" mechanism in the reserve system effectively locks in part of the circulating supply—currently, the approximately 200,000 Bitcoins held by the U.S. government account for 1% of the total circulating supply, potentially forming long-term liquidity support.

Focus on Tonight's White House Crypto Summit

As the strategic Bitcoin reserve policy causes market turbulence, the White House will hold its first crypto summit at 3 AM tonight. The summit gathers numerous leaders from the crypto industry and is of high profile, humorously referred to as the "American version of a private entrepreneur symposium," becoming a key window to observe U.S. crypto policy.

Industry insiders generally believe that this summit will not only discuss the Bitcoin strategic reserve further but is also likely to make significant announcements regarding new regulations on digital asset taxation, stablecoin legislation, and the overall regulatory framework for the industry, which could have far-reaching impacts on the crypto asset sector. More details will be announced during the summit, warranting close attention.

However, it is important to note that the current U.S. economy faces recession risks, and Trump's tariff policies are inconsistent. These macroeconomic uncertainties make market sentiment sensitive and fragile, putting continued pressure on U.S. stocks and crypto assets. Against this backdrop, the market is full of expectations for the White House crypto summit's policies, but any news that fails to meet market expectations could trigger a new round of market volatility.

The 4E trading platform, as the official partner of the Argentine national team, supports assets such as cryptocurrencies, gold, U.S. stocks, indices, and foreign exchange, offering one-stop trading for USDT. Recently, it also launched a stablecoin wealth management product with an annualized yield of 8%, providing investors with potential hedging options. With 4E, investors can closely follow market dynamics, flexibly adjust strategies, and seize every potential opportunity.