Crypto News Catchup: Bitcoin Reserve Plan Shakes Markets, But No Gold-for-BTC Swap Yet

President Trump’s latest executive order has sparked intense debate in the crypto market, establishing a U.S. strategic bitcoin reserve and a digital assets stockpile to manage seized cryptocurrencies. While Bitcoin will be held indefinitely, altcoins may be sold at the Treasury’s discretion.

The move fulfills a key campaign promise but has led to $370 million in ETF outflows, as traders were disappointed by the lack of fresh government Bitcoin purchases. Meanwhile, Bitcoin remains range-bound, struggling to regain momentum after its recent all-time high. With no immediate plans to sell U.S. gold reserves for Bitcoin, analysts are closely watching market reactions to the next big move.

President Trump has signed an executive order to create two distinct cryptocurrency reserves: a strategic bitcoin reserve and a U.S. digital assets stockpile. The Bitcoin Reserve will consist of BTC seized through forfeitures and could be expanded through government acquisitions, all without imposing costs on taxpayers. The Digital Assets Stockpile, in contrast, will hold various altcoins seized by federal agencies, with the potential for some to be sold.

This move fulfills one of Trump’s key campaign promises to the crypto community, positioning Bitcoin as uniquely important while aiming to centralize and manage the government’s crypto holdings more effectively. The directive comes as Bitcoin trades 20% below its all-time high, signaling a strategic approach to digital asset management.

The Trump administration has no current plans to sell U.S. gold reserves to buy more Bitcoin, according to White House Crypto Czar David Sacks. While speculation is growing, Sacks clarified that discussions on such a move haven’t taken place yet.

However, the Treasury and Commerce Departments will explore budget-neutral ways to expand the newly established Strategic Bitcoin Reserve, which currently holds nearly 200,000 BTC from forfeitures. Unlike Bitcoin, which will be stored indefinitely, other seized cryptocurrencies may be sold off at the Treasury Secretary’s discretion. The White House maintains that Bitcoin deserves special treatment due to its security and decentralization.

After reaching an all-time high of $109,899 on January 20, Bitcoin has struggled to maintain its bullish momentum, retreating to a low of $78,140. The asset remains range-bound between $94,884 and $81,358, indicating a phase of market consolidation.

Technical indicators suggest a bearish bias. Bitcoin has slipped below the 50-period Exponential Moving Average (EMA), reinforcing downside pressure. The Momentum Oscillator remains below the 100 baseline, while the Relative Strength Index (RSI) stays under 50, reflecting waning buying interest.

If selling pressure intensifies, Bitcoin could test key support levels at $78,140, $74,350, and $63,010. Conversely, a recovery in bullish momentum may push prices toward resistance at $94,884, $99,350, and $106,335. Traders will be watching price action closely for signals of either a breakout or continued weakness.

Bitcoin ETFs saw $370 million in net outflows on March 7, following President Trump’s executive order establishing a U.S. strategic Bitcoin reserve.

Despite acknowledging Bitcoin’s role in global finance, the order did not include plans for fresh government purchases, disappointing traders and prompting institutional investors to reduce their exposure. Analysts suggest the market was expecting more aggressive accumulation, leading to the sharp reaction.

The establishment of a U.S. strategic bitcoin reserve marks a significant shift in the government’s approach to digital assets, but the market reaction has been mixed. While the move reinforces Bitcoin’s status as a unique asset, the lack of immediate government purchases has led to skepticism among investors, reflected in ETF outflows and Bitcoin’s continued price consolidation. As the Treasury and Commerce Departments explore budget-neutral ways to expand holdings, traders and analysts will be watching closely for signs of renewed momentum or further downside pressure in the crypto market.