On Thursday evening local time, USA President Trump signed an executive order to establish a strategy.$Bitcoin (BTC.CC)$This includes a reserve and a separate digital asset reserve (including Cryptos other than Bitcoin), which led to a decline in Bitcoin prices. However, the upcoming non-farm employment report and the cryptocurrency summit may bring new volatility to Cryptos.

According to Trump's executive order, the Bitcoin reserve will be funded by Bitcoins seized in criminal or civil litigation, and the Treasury Secretary and Commerce Secretary are authorized to formulate budget-neutral strategies to purchase additional Bitcoins, "provided that these strategies do not incur any incremental costs to USA taxpayers," wrote White House AI and Cryptocurrency advisor David Sacks in a post released late Thursday.

"Bitcoin is often referred to as 'digital Gold'," the executive order states. "Just as our nation has a responsibility to carefully manage the ownership and control of any other resources, our country must harness rather than restrict the power of Digital Currency to achieve prosperity."

The executive order also establishes a USA Digital Asset reserve, which includes other Cryptos obtained through seizures, but the USA government will not acquire additional Assets for this reserve.

Nonetheless, this Bitcoin reserve did not meet the ultimate expectations of many participants in the Cryptos industry. Steven Lubka, head of private clients and family offices at the Bitcoin financial services company Swan Bitcoin, stated that while not selling seized Bitcoins may be a good start, he ultimately hopes to see the USA government purchase and accumulate Bitcoins.

"Not selling seized Bitcoins is mainly favorable at the signaling and narrative level," Lubka said. He noted that this news has been largely absorbed by the market.

Trump's move aligns with the expectations of policy Analysts that he might order the government to stop selling seized crypto assets. However, the political barriers to the USA government actively purchasing Cryptos will be immense, and Congress is unlikely to approve any measures seen as using taxpayer money to benefit the relatively small number of USA taxpayers holding crypto Assets.

Ian Katz, an Analyst at the policy research firm Capital ALPHA Partners, told MarketWatch before the announcement of the executive order that there is a consensus on Capitol Hill that establishing a government reserve for purchasing Digital Currency through Cryptos would require legislation, which is unlikely to happen.

Seth Ginns, the head of liquid investments at the crypto investment firm CoinFund, stated that while on the surface it seems beneficial for the USA to enforce a crypto reserve through a presidential executive order, the fate of that reserve would be concerning if the next government takes a critical stance on Bitcoin four years later.

"Over time, it would be better to have congressional authorization to protect the crypto reserve from the next administration's influence," Ginns said in a phone interview.

However, Sachs believes that if the USA government had held onto its confiscated 0.195 million Bitcoins over the past decade, their value today would exceed 17 billion dollars, rather than the 0.366 billion dollars he mentioned. "This is the cost to American taxpayers of not having a long-term strategy," he said.

According to data from the blockchain intelligence platform Arkham Intelligence, as of Thursday, the USA government still holds various cryptocurrencies confiscated from illegal activities, with a total value of 18.1 billion dollars. Among them, over 0.198 million Bitcoins are valued at approximately 17.7 billion dollars.

Republican Senator Cynthia Lummis from Wyoming has been one of the most active proponents of establishing a Bitcoin strategic reserve on Capitol Hill. Last summer, she proposed a bill to purchase 1 million Bitcoins within five years.

In December of last year, she stated that a strategic Bitcoin reserve could be used to pay off the USA's federal debt.

"For the sake of future generations, we must take bold and substantive action to address our debt crisis and create a strategic Bitcoin reserve that gives us the opportunity to repay nearly half of the national debt with existing resources over the next 20 years, ensuring America's leadership in global financial innovation," Lummis said.

Loomis's financing idea partly relies on the vast gold reserves owned by the USA, which is a historical relic from when the dollar was once backed by gold, allowing dollar holders to exchange gold at a fixed price.

Since the early 1970s, the dollar can no longer be exchanged for gold, but the Treasury and the Federal Reserve still hold about 8,100 tons of gold.

The government values this gold at $42 per ounce, far below the current market price of $2,650.

Loomis hopes the Treasury will reassess the market price of this gold and use the book profit to fund the purchase of Bitcoin without raising taxes or issuing new national bonds.

However, this idea has yet to resonate in Congress. Loomis stated at a crypto conference last week that her "colleagues, even those from the same camp, are not ready" to push through legislation establishing a reserve of digital assets.

Nevertheless, several participants in the crypto industry expressed their greater concern for a clear policy framework rather than a digital asset reserve.

"Regardless of whether the USA government holds or trades Cryptos, it is not important, as it is more of a symbol of the legitimacy and use cases of these Assets," said Sue Ennis, the head of investor relations at a crypto mining company.$Hut 8 (HUT.US)$

"Overall, we want more rules so that we can innovate and collaborate with Financial Institutions, creating an innovative environment rather than one of enforcement in the USA, which was clearly what we experienced under the previous SEC chairman. We believe the new government will bring a completely different environment."

Zach Pandl, the research director at Grayscale Investments, believes that Bitcoin can further appreciate this year without the USA's strategic reserves.

On the contrary, he expects that as adoption increases, the price of Bitcoin will be driven up, and Bitcoin is expected to begin functioning as a store of value this year, especially with concerns that Trump's tariff policies might lead to rising inflation again. However, recently Bitcoin has mainly been trading in sync with risk assets.

Bitcoin investors are looking forward to the Crypto Summit.

Traders are waiting to observe the impact of this summit on Bitcoin prices.

There is market speculation that Trump will announce a tax cut for USA coins. This tax cut could apply to Bitcoin as it has been included in the plan to establish a crypto reserve. Trump's cryptocurrency push could stimulate institutional demand and trigger a rally.

In addition, Secretary of Commerce Howard Lutnik hinted that a Bitcoin-only reserve would be announced at the summit. Lutnik stated:

"The Bitcoin strategic reserve is something the president is interested in. He mentioned it several times during the campaign, and I think you'll see its implementation on Friday."

Michael Saylor also attended the summit and stated that the USA government will purchase 1 million Bitcoins within four years, which also fueled optimistic predictions for Bitcoin's price.

The non-farm report may exacerbate volatility.

In addition to the summit, macroeconomic factors are also driving the increase in Bitcoin prices. The USA February report will be released on Friday.Non-farm payroll dataIt will be based on market expectations affecting Bitcoin prices.

The ADP report shows weakness in the USA labor market, with only 77,000 new jobs added, a significant decrease from January's 143,000. On the other hand, Reuters expects the employment data to show growth in the labor market, with 160,000 new jobs added.

If the non-farm payroll data decreases, it will indicate weakness in the labor market, possibly leading the Federal Reserve to lower interest rates. This would be beneficial for Bitcoin prices. However, if the results exceed expectations, indicating a strong labor market, the Federal Reserve might maintain or raise interest rates to curb inflation, resulting in a decline in Bitcoin prices.

Editor/ping