The US Treasury Department plans to establish a Strategic Bitcoin Reserve following an executive order from President Trump in March. Treasury Secretary Scott Bessant stated that Bitcoin seized by the federal government will form the basis of this reserve. The Treasury is also exploring ways to acquire more Bitcoin without straining the budget.

US Aims for Bitcoin Leadership

This initiative reflects the administration’s goal to position the US as a key player in the global Bitcoin market. The US wants to be a dominant force in Bitcoin. This announcement marks a major change in how the US government, the largest player in the market, will deal with Bitcoin. We can expect increased demand, as the Treasury is not just holding assets but also looking to buy more. This will create a new type of buyer that is not price-sensitive, which should help stabilize prices in the coming weeks. Implied volatility for near-term options will likely stay very high. Traders should consider strategies that take advantage of rising prices and high volatility, such as buying long-term call options. Already, the T3 BitVol Index, a gauge of Bitcoin’s expected 30-day volatility, jumped over 25 points to 98 after this news. We anticipate the futures market will move into a steep contango, meaning futures contracts will trade at a much higher price than the spot price. The gap between the December 2025 CME futures contract and the spot price has widened to an annualized rate of over 19%. This offers a chance for basis trading, allowing traders to profit as institutional investors seek future exposure.

Big Changes in Global Digital Asset Strategy

This action takes away a significant potential supply from the market. In the past, we expected government-held Bitcoin to be sold off, like during the Silk Road seizures in the early 2020s. Now, this supply is being kept permanently, which will create a supply shortage just as demand receives official support. The focus on “budget-neutral” methods for acquiring Bitcoin is important; this isn’t just about printing money. The Treasury could use seized assets from other countries or issue bonds partially backed by the new reserve. This strategy mirrors what MicroStrategy did starting in 2020, but on a national level, it validates Bitcoin for other countries and pension funds. This “superpower” approach challenges other nations and may spark a global race for strategic digital assets. Recently, reports showed that sovereign wealth funds in the United Arab Emirates and Singapore increased their digital asset investments by an estimated $5 billion. The US policy now pressures other central banks and finance ministries to develop their own Bitcoin strategies. Create your live VT Markets account and start trading now.

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