BSR Executive Order
President Trump just signed an executive order officially creating a Bitcoin Strategic Reserve. Any Bitcoin deposited into the reserve will not be sold and only kept as a "store of value". Prior to this the US had sold approximately 195K Bitcoin for proceeds of $366 million. If that would have been held it would be worth over $17 billion today. A loss for the US of approximately $16.6 billion.
The BSR will be initially funded with the estimated 200K Bitcoin the US seized from criminal/civil cases. The Treasury & Commerce can acquire more BTC as long as it's budget neutral. The executive order also established a "US Digital Asset Stockpile" which will consist of other digital assets beyond BTC. Trump wants to make the US the "crypto capital of the world." I expect more new about the US buying BTC will be announced in the coming days/weeks.
This move really will push other countries to create and adopt as BSR or fear being left behind. A major factor that most do not comprehend is the BTC has a fixed supply of 21 million and only 450 BTC are mined everyday. Never in the history of the world has an asset been held by countries in a strategic reserve that has a fixed supply. Bitcoin fell on the news as the market expected a purchase commitment to be announced along side the BSR executive order.
Texas Senate Pass BSR
Today the Texas Senate passed the Strategic Bitcoin Reserve SB21 with a vote of 25-5. The next step is approval in the House, which at this point seems to be a forecon conclusion and the signature of the governor. The real question is which State will be the first one to hit the finish line. Keep in mind Texas is the 8th biggest economy in the world. Other states will definitely take direction from Texas and will be more willing to adopt a BSR. One thing to note is the Texas bill was updated to in february to include broader language to reflect the potential inclusion of other digital assets.
Quick Hits
- Brazilian Publicly traded company Meliuz adopt Bitcoin treasury strategy.
- Solana co-founder prefers no reserve, fears decentralization will be hampered if governments take charge.
- President of Belarus want to mine Bitcoin using energy surplus.
- Utah is still one senate approval away from sending the bill to the governor's desk, however session expires tomorrow so they either work fast or wait another year.
- Rumored that Trump may make Bitcoin "Tax Announcement" tomorrow for 0% capital gains for Bitcoin held longer than 1 year.
Technical Analysis Corner
I came across a interesting on-chain chart today that show some interesting elements:
- Market Value of Bitcoin
- Realised Value (an average of the price when it was last moved, multiplied by the total number of coins in circulation)
- Z-Score (orange line) - a standard deviation test that in the data between Market value and Realised value to identify extreme over or undervalued periods.
Current Z-Score is showing we are closer to the Buy zone than the Sell zone so we still have more upside to go before reaching the cycle top.
