On Mar. 7, 2025, crypto investor and Wolf of All Streets podcast host Scott Melker dedicated a huge part of his Wolf Den newsletter to the meaning of the Bitcoin reserve launch and the public reaction to it. Later that day, he added several statements via his X account, explaining the importance of this historic event. Table of Contents The U.S. Strategic Bitcoin Reserve creation The price drop explained Other reactions The U.S. Strategic Bitcoin Reserve creation Donald Trump promised the launch of the Bitcoin stockpile during his speech in the summer of 2024 at the Nashville Bitcoin conference. Around the same time, Sen. Cynthia Lummis introduced the BTC reserve bill, which suggested that the U.S. should acquire one million bitcoins over five years. Expectations were high. Crypto X was full of posts with hopes that Trump would sign the Bitcoin reserve creation order right after the inauguration. The reality turned out to be less thrilling as Trump didn’t even mention crypto in his inauguration speech. However, he pardoned Ross Ulbricht of Silk Road, which he promised to do. The Bitcoin reserve plans were confirmed later, and Sen. Lummis joined the Senate Banking Subcommittee on Digital Assets as a chair. On Mar. 6, the executive order to establish a Bitcoin reserve was signed. The reserve turned out to be different from the one Lummis proposed. Its spirit is much closer to the initial Trump vision of a stockpile made up of the seized bitcoins that the government will not sell. The reserve will be growing via seizures and forfeitures so that it will not use the taxpayers’ money. More than that, the reserve can be increased using other avenues not associated with taxes. I have a few budget-neutral strategies for acquiring additional bitcoin… — Michael Saylor⚡️ (@saylor) March 7, 2025 Currently, the U.S. is holding around 200k bitcoins. The accurate amount is not clear yet, so the government is conducting an audit. The Digital Assets Stockpile was created on the same date. This one will include other cryptocurrencies, namely ETH, ADA, SOL, and XRP. Some allege there is a possibility for a conflict of interest as White House crypto czar David Sacks may indirectly profit from creating the reserve of these cryptocurrencies. Sacks denies these accusations. You might also like: Elizabeth Warren probes David Sacks’ Bitwise ties amid crypto reserve plan Following the creation of the Bitcoin Reserve, the BTC price dropped by $5,000, while the creation of the Strategic Bitcoin Reserve has always been perceived as a trigger that will let bulls out. Scott Melker explained why the price dropped and why the move was great despite the criticisms. The price drop explained Scott Melker decisively associates the price drop with the disappointment from those who were expecting that the Strategic Bitcoin Reserve launch would be followed by buying Bitcoin in large amounts. The reaction to the Strategic Bitcoin Reserve makes one thing clear: Most people who claim to be in Bitcoin for the fundamentals really just care about number go up. The U.S. locking up BTC as a store of value is massive long-term validation—but because it’s not an instant… — The Wolf Of All Streets (@scottmelker) March 7, 2025 Melker starts his message in the newsletter with “we did it,” calling recognizing Bitcoin as a strategic asset”[America’s] biggest move yet in the Bitcoin game.” From the start, Melker states that other countries will have to follow suit in the Bitcoin race. He stresses that the U.S. will barely tolerate being second after China in terms of the BTC reserve. As of now, the U.S. reserve may be less than the Chinese one. It sets the stage for the global Bitcoin race that will move the price up in the long term. Further, Melker explains that the difference between the Digital Assets Stockpile and the Strategic Bitcoin Reserve indicates that the U.S. explicitly considers Bitcoin the only cryptocurrency fitting the criteria of a strategic asset worth finding potential acquisition avenues. “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”. JUST IN: US STRATEGIC #BITCOIN RESERVE NEWS CIRCULATING IN CHINESE MEDIA GAME THEORY 🙌 pic.twitter.com/AYk06XWGuW — The Bitcoin Historian (@pete_rizzo_) March 7, 2025 As for the price drop, Melker throws in another factor, saying that when the big news “drops into an illiquid market — leverage flushes out weak hands.” Then, the bigger investors show up, moving the price up. And that’s what actually happened next. The Wolf of All Streets host continues by saying that the global demand for Bitcoin stimulated by the SBR launch will increase the upward pressure in the long term. Other reactions There were angry voices across the Internet after the details of the BTC reserve were revealed. Many people were disappointed by the decision not to spend tax money to buy more Bitcoin. Some don’t even see much difference between U.S. Marshalls holding seized bitcoins and the U.S. Treasury holding the same coins in the SBR. We did it. pic.twitter.com/sqOTEtBi5j — Adam Simecka (@AdamSimecka) March 7, 2025 Understandingly, Scott Melker confronted this point of view as it ignores what is written in the order, which doesn’t deny the future budget-neutral BTC acquisitions. If you think that the Bitcoin SBR is bad news because it will only contain seized bitcoin, then you are bad at reading and worse at comprehending what you are reading. Sell me your Bitcoin. — The Wolf Of All Streets (@scottmelker) March 7, 2025 Jeff Park of Bitwise Invest dismissed the executive order, saying there was nothing strategic about it. Park said the entire SBR story turned out to be a major pump-and-dump chapter, and he is happy it’s over. I’m honestly just glad we can get this pump and dump chapter finally over with and move on to the things that actually matter Tax policies for crypto capital gains 10y rates Bitcoin backed stablecoin — Jeff Park (@dgt10011) March 7, 2025 Many Bitcoin bulls praised the move, expressing little to no disappointment, calling the executive order historical. For instance, Senator Lummis voiced her full support for the move despite her project being rejected. The only concern she raised was the lack of congressional support for the Strategic Bitcoin Reserve. This is only the ₿eginning pic.twitter.com/a2WsNDHUV9 — Senator Cynthia Lummis (@SenLummis) March 7, 2025 A prominent Bitcoin supporter using the moniker Bitcoin Therapist called the order “the most bullish news [he has] seen in the past four years.” GM. THE UNITED STATES IS GOING TO BUY BITCOIN. THIS IS A FACT. READ THE FINE PRINT. ANYONE WHO SAYS DIFFERENTLY IS BEING DISINGENUOUS. THIS IS THE MOST BULLISH NEWS I’VE SEEN IN PAST 4 YEARS. THE ENTIRE WORLD IS NOW ON HIGH ALERT. BITCOIN TREASURIES ARE COMING. — The ₿itcoin Therapist (@TheBTCTherapist) March 7, 2025 Anyways, the U.S. crossed the Rubicon. We’ll see what happens next. You might also like: Jake Chervinsky: SBR and stockpile “not enough” to make U.S. crypto capital of the world
