President Donald Trump signed an executive order establishing a Strategic Bitcoin Reserve and a Digital Asset Stockpile, marking a significant move toward integrating Bitcoin into the US financial system. According to a report by Cointelegraph on March 7, the plan initially involves using cryptocurrency seized in government criminal cases. Joe Burnett, head of market research at Unchained, described the move as the first “real step” toward incorporating Bitcoin into the global financial framework. “The Bitcoin integration era has begun,” Burnett stated, emphasizing that the US now acknowledges Bitcoin’s role as a foundational asset for a more stable monetary system.
Despite this historic development, Bitcoin’s price dropped over 6% following the announcement, falling from $90,400 to $84,979. The decline was attributed to investor disappointment, as many had expected the government to announce additional Bitcoin purchases. Burnett, however, noted that the executive order confirmed Bitcoin’s status as a key global financial asset, no longer an outsider. “As the seventh-most valuable asset on earth, it is now positioned alongside traditional reserves,” he added, highlighting its potential to redefine financial security and inflation protection.
Further details on the Bitcoin reserve and digital asset stockpile are anticipated at Trump’s upcoming White House Crypto Summit on March 7. Burnett suggested that the reserve could lead to new Bitcoin-backed financial products, including lending mechanisms and cross-border settlement solutions. “Expect to see new financial products designed around Bitcoin,” he remarked, adding that the industry is entering a defining phase where early adopters may gain a competitive edge.
The crypto sector has already seen significant advancements in Bitcoin-based decentralized finance (DeFi), also known as BTCFi. Following the April halving in 2024, the industry experienced a 22-fold increase in value, driven by infrastructure growth and rising Bitcoin prices. Data from DefiLlama shows that the total value locked (TVL) in the Bitcoin network surged over 2,000% during 2024, reaching $6.5 billion by December 31 from $307 million in January. This growth was largely fueled by developments in Bitcoin staking and restaking platform Babylon, which controls over 80% of BTCFi’s TVL. Babylon introduced Bitcoin-native staking, marking a pivotal moment in crypto history.
— news from Cointelegraph