Bitcoin Holds Above $100,000 As U.S. Legalizes Strategic BTC Reserves
Bitcoin continues to defy expectations, holding firmly above the $100,000 mark as the U.S. government moves to legalize Strategic Bitcoin Reserves, signaling unprecedented institutional backing and reshaping the digital-asset landscape. President Trump’s March 2025 executive order directs the Treasury to capitalize a Strategic Bitcoin Reserve with forfeited BTC, establishing digital currency alongside oil and gold as a sovereign hedge. This historic move has injected fresh confidence, driving BTC toward record highs and stabilizing price action around six figures despite broader economic uncertainty.
Strategic Bitcoin Reserve: A New Federal Asset
On March 6, 2025, President Trump signed an executive order creating the Strategic Bitcoin Reserve, funded by Bitcoin seized through criminal and civil forfeitures (currently valued at over $17 billion). The Reserve is to be managed by the U.S. Treasury, which must employ taxpayer-neutral strategies—such as dollar-cost averaging—and is explicitly prohibited from selling the BTC holdings, ensuring long-term accumulation. This parallels state-level initiatives: New Hampshire became the first state to pass a Strategic Bitcoin Reserve bill in early May, with Arizona following suit days later.
Bitcoin’s Price Reaction Above $100K
Following implementation of the Strategic Reserve mandate and related state laws, Bitcoin surged past $101,700, marking its highest levels since early 2025. The rally was bolstered by combined federal and state signals that digital assets are now recognized reserve assets. Despite occasional pullbacks, BTC has found support above $100,000, a level that has held through multiple tests in recent weeks.
Drivers of Sustained Strength
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Institutional Adoption: Regulatory clarity around custody and reserve mandates has encouraged major financial institutions to increase Bitcoin allocations. The Office of the Comptroller of the Currency (OCC) also clarified that national banks can custody digital assets, further reducing operational barriers.
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Supply Constraints: The Reserve’s prohibition on selling ensures a continued reduction in circulating supply, as forfeited coins are locked up indefinitely. At the same time, ongoing halving effects and reduced miner sell-pressure keep new supply in check.
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Macro Tailwinds: A weakening U.S. dollar and growing concerns around inflation have driven investors toward non-sovereign assets. Bitcoin’s fixed supply and global liquidity make it a compelling hedge, akin to digital gold.
Potential Risks and Outlook
While the Reserve framework provides strong support, Bitcoin faces headwinds: regulatory shifts, global economic shocks, or technical challenges could trigger volatility. However, the statutory commitment to hold BTC as a strategic asset makes a deep sell-off less likely. Many analysts now set $120,000–$150,000 as realistic targets for mid-2025, assuming continued Reserve accumulation and mainstream adoption.
Conclusion
Bitcoin’s resilience above $100,000 reflects more than market speculation; it signals a fundamental shift in how the world’s largest economy perceives digital assets. By legally enshrining BTC as a Strategic Federal Reserve asset, the U.S. has laid the groundwork for sustained institutional demand, tighter supply dynamics, and a new paradigm in national reserve management. As both federal and state entities build their reserves, Bitcoin’s role as a cornerstone of modern financial strategy appears set to deepen—potentially ushering in an era where digital assets stand alongside oil, gold, and fiat as bona fide sovereign reserves.
