Key Takeaways
- Trump's Strategic Bitcoin Reserve will launch with about 103,500 BTC.
- K33 analysts see the reserve as a major step for Bitcoin legitimacy.
- Treasury Secretary Scott Bessent will outline Bitcoin acquisition plans by May 5.
President Trump’s Strategic Bitcoin Reserve remains a significant development despite the ongoing market selloff and concerns about a potential recession, according to analysts at K33.
Market conditions
Bitcoin dropped to a yearly low of $76,555 on Tuesday, while ether hit $1,775—its lowest level since November 2023.
The GMCI 30 index, which tracks the top 30 cryptocurrencies, has fallen 26% year-to-date.
Meanwhile, the S&P 500 and Nasdaq are also at multi-month lows due to economic uncertainty and fluctuating tariffs.
Analysts’ perspective
However, K33 analysts Vetle Lunde and David Zimmerman argue that Bitcoin has still gained 13% since the presidential election, outperforming equities.
They attribute this to Trump following through on his Bitcoin policies, first by forming a crypto working group and now by establishing a U.S. Strategic Bitcoin Reserve.
The analysts wrote:
This reserve is a watershed moment for Bitcoin. This is a huge leap forward in legitimizing BTC as a global store of value.
Bitcoin acquisition plan expected by May 5
Trump’s March 6 executive order established the U.S. Strategic Bitcoin Reserve using the approximately 200,000 BTC ($17 billion) seized by the federal government in criminal and civil cases.
After returning certain assets to victims, the reserve is expected to launch with about 103,500 BTC.
Treasury Secretary Scott Bessent has been tasked with developing budget-neutral strategies for acquiring additional Bitcoin, with an evaluation due by May 5.
Analysts suggest potential funding sources could include U.S. Treasury Exchange Stabilization Fund surpluses or IMF special drawing rights sales.
K33 analysts suggested this could influence other nations to follow suit, saying:
The most influential global superpower has just flagged an end to seized bitcoin sales. Further, it’s exploring strategies to acquire more.
