US’ Newly Approved Bitcoin Reserve Could Force Global Rush, Analysts Say

Key Takeaways

• Trump’s executive order establishes a U.S. Bitcoin reserve, elevating BTC as a strategic asset.
• The order could accelerate Bitcoin adoption in national reserves worldwide.
• It could create urgency for other countries to secure Bitcoin before the U.S. accumulates more.

President Donald Trump’s latest executive order marks a turning point for Bitcoin’s role in global finance.

It officially recognizes Bitcoin as a strategic asset and sets the stage for a potential geopolitical race to accumulate BTC.

Trump’s Bitcoin Strategic Reserve Plan

By directing the creation of a U.S. Bitcoin reserve, Trump is effectively legitimizing the BTC and forcing policymakers worldwide to reassess its role in financial reserves.

While the announcement initially sparked a rally, the crypto market quickly reversed its gains as investors digested the details of the executive order.

Market observers remain focused on the specifics of how the U.S. government will manage this reserve and the long-term implications of the move.

Here are the key aspects of Trump’s order:

• No Taxpayer Funding: The reserve will be built exclusively from Bitcoin seized in criminal and civil forfeiture cases, eliminating any direct government purchases.
• Strict Oversight: Federal agencies will oversee the reserve, ensuring assets are not prematurely liquidated, as had been the case in previous government auctions.
• Expanding Scope: While Bitcoin will be the primary asset, the stockpile may also include other confiscated digital assets.
• Strategic Positioning: The reserve aims to leverage Bitcoin’s fixed supply, reinforcing its value as a long-term store of wealth within the U.S. financial system.

Global Bitcoin Arms Race?

The U.S. government’s decision to hold Bitcoin could have far-reaching consequences, potentially triggering a domino effect among other nations.

By officially recognizing Bitcoin as a strategic reserve asset, Washington has granted it an unprecedented degree of legitimacy—one that could reshape global monetary policy.

Matt Hougan, Chief Investment Officer at Bitwise, believes the move marks a pivotal moment for Bitcoin’s adoption.

He shared that the U.S. formally holding Bitcoin makes regulatory crackdowns far less likely, shifting its perception from a speculative asset to a strategic one.

The Bitwise executive argues that this decision will accelerate Bitcoin adoption among sovereign wealth funds and central bank reserves , especially in nations already considering alternatives to gold and U.S. Treasuries.

Governments that were previously hesitant may now feel pressured to act, fearing the U.S. could gain a dominant position.

Hougan adds that the order makes it increasingly difficult for institutions like the International Monetary Fund (IMF) and central banks to dismiss Bitcoin as a fringe asset.

Other analysts share this view, arguing that the U.S. government’s recognition of Bitcoin could mark a paradigm shift in global finance.

Potential Winners and Losers

If a global Bitcoin arms race unfolds, some nations are already ahead of the curve, while others risk falling behind.

Nations Leading the Way

El Salvador remains the top government advocate for Bitcoin, having made it legal tender in 2021.

The country has steadily expanded its holdings—now exceeding 6,000 BTC—while integrating Bitcoin into its financial infrastructure.

However, its pace of accumulation has slowed as the IMF tied a $1.4 billion loan to fiscal discipline.

Bhutan has quietly built its Bitcoin reserves, using the asset as part of a broader diversification strategy.

The Himalayan kingdom has also explored mining, leveraging its abundant hydroelectric power to generate Bitcoin income.

In Europe, Switzerland has provided regulatory clarity for digital assets, allowing some cantons to accept Bitcoin for tax payments.

Germany’s financial regulators have also embraced Bitcoin, enabling institutional investors to hold crypto assets under defined legal frameworks.

The Middle East is emerging as another key player.

The United Arab Emirates, particularly Dubai and Abu Dhabi, has positioned itself as a crypto hub with clear regulations and sovereign interest in digital assets.

Saudi Arabia is also exploring Bitcoin as part of its Vision 2030 strategy, recognizing its potential role in the future of finance.

Countries at Risk of Falling Behind

China , once a dominant force in Bitcoin mining and trading, has effectively exited the market.

After banning crypto transactions and forcing miners to relocate, Beijing liquidated all Bitcoin holdings and doubled down on its central bank digital currency (CBDC) strategy.

While China still indirectly influences the market through its offshore traders and tech industry, its official stance will be a disadvantage if Bitcoin plays a larger role in global reserves.

India remains uncertain about Bitcoin’s future within its financial system.

The country has imposed a 30% tax on crypto gains and restricted banking support for digital assets, leading to capital flight and stagnation in local crypto markets.

While discussions about regulatory clarity persist , India risks falling behind if it continues to approach Bitcoin with hesitation.

With the U.S. now formally holding Bitcoin, the global dynamics of digital asset adoption are shifting.

Nations that recognize Bitcoin’s potential early may gain a long-term financial advantage, while those that hesitate could find themselves playing catch-up in an increasingly digital economy.