Conor Grogan, Coinbase’s director of product strategy and business operations, estimated that President Donald Trump’s Strategic Bitcoin Reserve could reduce around US$18 billion in sell-side pressure.

Despite this, bitcoin’s price dropped 5% within 24 hours of the announcement, trading at US$85,798.

The reserve was established through an executive order and will be funded using bitcoin seized from criminal and civil asset forfeitures.

David Sacks, the White House’s AI and crypto czar, said that the bitcoin in the reserve will be retained as a store of value rather than sold.

Arkham Intelligence data shows the US government currently holds about 198,109 bitcoin, 122 million USDT, and 56,035 ethereum.

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