The post Trump’s Bitcoin Executive Order Revealed – U.S. Misses Billions in Profits! appeared first on Coinpedia Fintech News
After much anticipation, President Donald Trump
Donald Trump
Donald Trump is an American former president politician, businessman, and media personality, who served as the 45th president of the U.S. between 2017 to 2021. Trump earned a Bachelor of science in economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential election as the Republican Party nominee against Democratic Party nominee Hillary Clinton while losing the popular vote. As president, Trump ordered a travel ban on citizens from several Muslim-majority countries, diverted military funding toward building a wall on the U.S.–Mexico border, and implemented a family separation policy. Trump has remained a prominent figure in the Republican Party and is considered a likely candidate for the 2024 presidential election
President
has officially signed the executive order to establish a strategic Bitcoin reserve. The game-changing move means that the U.S. government will no longer sell the Bitcoin stored in this reserve. However, a key takeaway is the significant loss the government faced—having sold a significant amount of BTC. With Bitcoin’s current surge in value, the U.S. has missed out on billions in potential profit.
The new reserve strategy is designed to ensure these assets are preserved for long-term growth, avoiding costly mistakes of the past. In the latest move, the Bitcoin, all obtained through civil or criminal forfeitures, will be stored for long-term value in a “digital Fort Knox.” David Sacks, Trump’s Crypto Czar shared this in an X post.
It also calls for a stockpile of other cryptocurrencies seized by the government. Besides, the order encourages officials to find ways to add more Bitcoin to the reserve, as long as it doesn’t hurt the federal budget.
Notably, the U.S. government has been sitting on a large amount of Bitcoin and may have missed out on significant profits by selling it too early. The new executive order seeks to correct this by creating a reserve that will keep these assets for the long term.
Sacks has previously criticized past U.S. administrations for selling seized Bitcoins. He revealed that nearly 195,000 BTC were sold over ten years for just $366 million. According to Sacks, if the government had kept those Bitcoins, they would now be worth over $17 billion, especially as Bitcoin approaches $100,000.
According to Lookonchain, the U.S. government’s public wallet currently holds 198,109 BTC, valued at approximately $16.92 billion. Historically, the government has transferred around 222,684 BTC to platforms like Coinbase, Coinbase Prime, and other unknown wallets. These transactions took place at an average price of $14,736 per Bitcoin, totaling about $3.28 billion at the time.
However, with Bitcoin’s current market price, those same 222,684 BTC are now worth about $19.42 billion. This means that the U.S. government has incurred a loss of roughly $16.14 billion due to selling Bitcoin prematurely.
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This highlights the missed potential value as Bitcoin’s price continues to rise, reinforcing the need for a strategy that preserves these digital assets for long-term value, as outlined in the new executive order.
Bitcoin dropped nearly 5% to $85,000 shortly after the order was announced, possibly due to disappointment that the reserve only includes tokens already held by the government, with no new purchases for now.
Ethereum (ETH), Ripple (XRP), Cardano (ADA), and Solana (SOL) also witnessed sharp drops of 4%-8%, as the order doesn’t allow for new government buys of these cryptocurrencies.
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