The Wolf Den #1151 - The Strategic Bitcoin Reserve
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In This Issue:
The Strategic Bitcoin Reserve
Bitcoin Thoughts And Analysis
Legacy Markets
Study This Image
The Texas Senate Passes SB21 For A Strategic Bitcoin Reserve
Goldman Is Taking Baby Steps Toward Tokenization
These Big Names Will be Attending The White House Crypto Summit
Jump Is Returning To Crypto In The U.S.
Bitcoin Volatility EXPLODES | Trump To Announce The Strategic Bitcoin Reserve?
The Strategic Bitcoin Reserve
We did it.
The United States just made its biggest move yet in the Bitcoin game, officially recognizing BTC as a strategic asset. With a single executive order, President Trump has set in motion a geopolitical race that will force other nations to follow suit. The order establishes a Strategic Bitcoin Reserve (SBR), effectively putting Bitcoin on the same level as gold and other national reserves. While some critics argue this doesn’t immediately impact the market because the government isn’t actively buying Bitcoin yet, they’re missing the long-term significance. The U.S. just signaled that Bitcoin is here to stay as a key financial asset, and history tells us that when America sets the standard, the rest of the world follows.
Yet, despite the overwhelmingly bullish implications, Bitcoin’s immediate reaction was a sharp selloff. Within minutes of the announcement, BTC plunged nearly $5,000, catching many traders off guard. But just as quickly, it began recovering, erasing much of the losses by today. This kind of volatile reaction is typical when major news drops into an illiquid market—leverage flushes out weak hands before the bigger players step in. The short-term dip doesn’t change the long-term reality: this move is extremely bullish, and as the global race for Bitcoin accelerates, the upward pressure will only grow.
This move comes just as Texas takes its own steps toward Bitcoin adoption. Yesterday, the Texas Senate passed a bill to create a Bitcoin strategic reserve for the state, reinforcing its position as a Bitcoin-friendly jurisdiction. The bill now moves to the Texas House, and if passed, it will go to Governor Greg Abbott for final approval. The timing is no coincidence—both at the state and federal levels, Bitcoin is being formally recognized as a crucial financial and geopolitical asset.
Breaking Down the Executive Order
The executive order lays out two key initiatives:
The Strategic Bitcoin Reserve (SBR) will be composed solely of Bitcoin, making it the first time the U.S. government has explicitly classified BTC as a strategic national asset. The reserve will be formed using Bitcoin already in the government’s possession—seized over the years through criminal and civil forfeitures. At present, estimates suggest the government holds between 112,000 and 200,000 BTC, though this order mandates a full audit to determine the exact amount. The crucial distinction here is that, while the government is not yet purchasing Bitcoin, the authorization is in place for acquisitions through budget-neutral methods, such as issuing Bitcoin-backed bonds or reallocating other assets like gold. Figures like Howard Lutnick and Ken Bessent will oversee this process, ensuring that Bitcoin accumulation can occur without taxpayer burden.
The Digital Asset Stockpile will include Ethereum, XRP, Cardano, Solana, and potentially other tokens. However, unlike the SBR, this stockpile will not be actively increased - it is simply a classification and management effort for digital assets already in U.S. government possession. The key takeaway here is that Bitcoin is the only asset deemed strategically important enough to warrant potential future acquisitions.
Game Theory Is Now in Play
Perhaps the most overlooked aspect of this move is the global race it will trigger. China currently holds as much Bitcoin as the U.S., with estimates placing its BTC reserves at 194,000 BTC. If Bitcoin is now classified as strategic, does anyone really believe the U.S. government will accept being second place to China after we return the Bitfinex tokens?? Not a chance. The moment this audit confirms that the U.S. holds less Bitcoin than China, the pressure will mount for further accumulation.
That’s where things get interesting. This executive order may not have sparked an immediate price rally, but it guarantees long-term upward pressure. Once the U.S. starts accumulating Bitcoin—whether through bonds, asset swaps, or outright purchases—other countries will be forced to respond. If the U.S. is treating Bitcoin like a national reserve asset, every other major nation will have to consider doing the same or risk falling behind.
The ETFs legitimized Bitcoin for institutions—this executive order legitimizes it for governments. The SBR is a digital Fort Knox, and this move marks the beginning of a new era in Bitcoin adoption. The U.S. is playing the long game, and if history is any guide, this is just the first step toward full-scale accumulation.
Competition is good for Bitcoin. Plan accordingly.
Bitcoin Thoughts And Analysis
Bitcoin’s daily chart is showing rejection from resistance at $91,271, signaling that the recent bounce might be losing steam. The price failed to hold above this key level and is now back below it, indicating potential weakness unless buyers step in quickly.
The 200-day moving average remains intact as support, which is a critical level to watch. If price continues lower, a retest of $85,000 and the 200 MA is possible. However, for bulls to regain control, Bitcoin needs to close back above $91,271, confirming strength and opening the door for a push toward $94,990.
Volume has decreased compared to the strong buying days from the recent bounce, suggesting momentum is slowing. This could mean consolidation or another leg down before any significant rally.
If sellers continue to dominate, a lower high could be forming, which would indicate more downside risk. Bulls need to reclaim lost levels quickly, or we may see another sweep of lower support in the coming days.
Yesterday’s SBR is being bought back up, so there’s some clear demand.
Legacy Markets
Global markets remain volatile as European stocks followed Asia lower, driven by uncertainty surrounding President Donald Trump's shifting trade policies and disappointing details about the U.S. strategic Bitcoin reserve. The Stoxx 600 dropped 0.5%, while Japan’s Nikkei 225 plunged over 2%. U.S. futures signaled a modest rebound after Thursday’s sharp losses, with S&P 500 futures pointing higher. Treasury yields edged up, while the dollar extended its decline for a fifth straight session.
Trump’s delayed tariffs on Mexico and Canada until April 2 have added to market uncertainty, with speculation mounting over sector-specific tariffs and reciprocal duties on other nations. Meanwhile, Bitcoin tumbled more than 5% after details emerged that the U.S. strategic crypto reserve would rely on existing government-held Bitcoin rather than new taxpayer funding. Investors are now focused on the upcoming U.S. nonfarm payrolls data, which will provide key insight into the labor market and the Federal Reserve’s interest rate trajectory. Fed Chair Jerome Powell is also set to speak later today, potentially offering further policy guidance.
In Europe, Germany’s historic defense and infrastructure spending plans have lifted the euro but driven bond yields sharply higher, raising concerns over debt issuance. Oil prices are on track for their biggest weekly decline since October, while gold continues to rise as investors seek safe-haven assets. With confusion surrounding trade policies, crypto volatility, and key economic data ahead, markets remain on edge as investors look for clarity on growth and inflation trends.
Key events this week:
Eurozone GDP, Friday
US jobs report, Friday
Fed Chair Jerome Powell gives keynote speech at an event in New York hosted by University of Chicago Booth School of Business, Friday
Fed’s John Williams, Michelle Bowman and Adriana Kugler speak, Friday
Some of the main moves in markets:
Stocks
The Stoxx Europe 600 fell 0.5% as of 9:54 a.m. London time
S&P 500 futures rose 0.4%
Nasdaq 100 futures rose 0.6%
Futures on the Dow Jones Industrial Average rose 0.2%
The MSCI Asia Pacific Index fell 0.8%
The MSCI Emerging Markets Index fell 0.2%
Currencies
The Bloomberg Dollar Spot Index fell 0.4%
The euro rose 0.8% to $1.0866
The Japanese yen rose 0.4% to 147.43 per dollar
The offshore yuan rose 0.2% to 7.2297 per dollar
The British pound rose 0.5% to $1.2941
Cryptocurrencies
Bitcoin fell 0.9% to $88,999.95
Ether fell 0.8% to $2,196.25
Bonds
The yield on 10-year Treasuries declined one basis point to 4.27%
Germany’s 10-year yield was little changed at 2.83%
Britain’s 10-year yield advanced two basis points to 4.68%
Commodities
Brent crude rose 1.2% to $70.30 a barrel
Spot gold rose 0.3% to $2,921.33 an ounce
Study This Image
Cross-check this image with the altcoins in your portfolio. The goal isn’t necessarily to own the assets that meet all these criteria, but I highly recommend consolidating your holdings into the ones listed above. If you own tokens that haven’t been mentioned by Trump, lack ETF applications, haven’t been to the White House, and aren’t U.S.-based, I’d be skeptical about their long-term viability. Trump is making it clear that he wants this industry to thrive in the U.S., and projects operating entirely outside this scope will likely face a tougher path ahead.
The Texas Senate Passes SB21 For A Strategic Bitcoin Reserve
The passage of Senate Bill 21 (SB21) by the Texas Senate is an important step in the legislative process, but it does not mean the bill has become law. After approval by the Senate, the bill must be considered and passed by the Texas House of Representatives. If the House passes the bill, it is then sent to the Governor, who can sign it into law or veto it. Therefore, SB21’s approval by the Senate is a significant milestone, but additional steps are required before it becomes law.
SB21, introduced by Senator Charles Schwertner, proposes the establishment of the Texas Strategic Bitcoin Reserve, allowing the state to invest in Bitcoin and other qualifying cryptocurrencies. The bill aims to enhance Texas’s financial resilience by leveraging cryptocurrency investments.
Goldman Is Taking Baby Steps Toward Tokenization
Goldman Sachs is launching its own version of a tokenized money market fund. While it’s not on the blockchain, it’s a solid first step that will inevitably pave the way for bringing treasuries on-chain. As Goldman grows more comfortable with the technology, tokenized equities seem like the natural final step.
From the SEC Registration Statement: “Although the Fund does not currently employ blockchain technology or invest in crypto assets, Intermediaries through whom shareholders purchase and redeem Token Shares intend to employ blockchain technology to maintain a record or a mirror record of share ownership for its customers.”
Goldman’s head of digital assets said the following about tokenization, “We view permissioned distributed technologies as the next structural change to financial markets and are already demonstrating the meaningfulness of the technology’s perceived benefits. Delivering a distributed technology solution to a wide cross-section of financial market participants has the potential to redefine market connectivity, infrastructure composability, and to deliver a new suite of commercial opportunities for the buy- and sell-side.”
These Big Names Will be Attending The White House Crypto Summit
I’m keeping a running list of attendees for today’s White House Crypto Summit, Some notable attendees include Michael Saylor (Strategy), David Bailey (Bitcoin Conference), Matt Huang (Paradigm), Bo Hines (Presidential Council of Advisers for Digital Assets), Kyle Samani (Multicoin Capital), Zach Witkoff (World Liberty Financial), Brian Armstrong (Coinbase), Sergey Nazarov (Chainlink), Vlad Tenev (Robinhood), Brad Garlinghouse (Ripple), Kris Marszalek (Crypto.com), JP Richardson (Exodus), and Arjun Sethi (Kraken). With the strategic reserve structure already announced via executive order, it will be interesting to see what the “big takeaways” are from this summit.
Jump Is Returning To Crypto In The U.S.
Chicago-based trading giant Jump is ramping its cryptocurrency operations back to full strength after previously scaling down in the U.S. due to regulatory scrutiny. Although it maintained digital asset trading and market-making overseas, the firm is now preparing for renewed growth, hiring crypto engineers, and planning to fill U.S. policy and government liaison roles. Jump faced intense regulatory pressure following the Terra Luna and FTX collapses, leading to reports of a U.S. pullback, including spinning out its Wormhole project and halving its Jump Crypto division staff.
Bitcoin Volatility EXPLODES | Trump To Announce The Strategic Bitcoin Reserve?
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