Bitcoin Crashes as Fears Rise about Governments Potentially Ruling Market in Future
Bitcoin Crashes: Bitcoin experienced a sharp 8.9% plunge over the past few days after the newly elected US president, Donald Trump, signed an executive order to create a Strategic Bitcoin Reserve. It will not include the altcoins mentioned earlier – ETH, ADA, and XRP. According to the crypto tsar David Sacks, those altcoins were mentioned by Trump only because they are part of the top five list.
Even though the Bitcoin reserve will be created, the government made a statement that they do not plan to start immediately buying any large amounts of BTC soon, contrary to mammoth expectations coming from the crypto community. During the recent Digital Asset Summit in the White House, it was made clear that the US government plans to use the 200,000 BTC it holds already – those Bitcoins were confiscated from various illegal platforms and activities, including the notorious Silk Road founded by Ross Ulbricht.
Community’s hopes shattered, Bitcoin nosedives
This announcement shook the cryptocurrency market, while previously it was full of excitement from hopes that the government might copycat institutional investors and progressive wealth management firms that have been accumulating Bitcoin recently. The lack of a Bitcoin acquisition program initiated by the government has shattered hopes of a significant BTC demand surge in the near future and triggered a series of sell-offs.
As investors began to come to grips with the reality, the Bitcoin price crashed from $90,400 to $82,500 within three days, starting Friday. Some investors now fear that the refusal to purchase Bitcoin may be followed by strict regulatory actions.
Besides, to cap it all, concerns have been building about governments potentially getting control over the crypto market if they decide to accumulate Bitcoin in the future and become the largest holders. This contradicts the core idea behind Bitcoin, which was created by Satoshi Nakamoto as a decentralized alternative to the financial system free from governmental control.
With the US government currently holding almost 200,000 Bitcoins, some Bitcoiners fear that the government may start manipulating the BTC price and implement stricter regulations. If other governments gradually start jumping on the Bitcoin bandwagon, these fears may mount rapidly.
Saylor urges US government to buy 25% of BTC supply
The founder of the Bitcoin-focused company Strategy, Michael Saylor, one of the biggest Bitcoin advocates, has published a document titled “A Digital Assets Strategy to Dominate the 21st Century Global Economy”, saying that the US government should accumulate from 5 to 25% of the total Bitcoin supply over the next ten years.
That will be the year 2035, and by that time, 99% of all 21 million BTC will have been already mined, Saylor stressed. On March 7, Saylor presented this document to Donald Trump and top government executives during the Crypto Asset Summit in the White House. Strategy founder believes that accumulating that much BTC through regular and sustainable buys would give the US a major strategic advantage and reinforce the global dominance of the US dollar, allowing the US to remain the leader in the global and rapidly changing financial landscape.
Saylor continues to advocate his vision that Bitcoin’s role as a global reserve asset alongside gold will definitely increase in the future. The BTC evangelist strongly believes that the Strategic Bitcoin Reserve (SBR) can potentially generate $16-81 trillion in wealth for the US Treasury within the next 20 years, increase the wealth of US citizens, and even help the country repay its mammoth national debt, which stands above $31 trillion.
“By 2045, the reserve should be generating $10+ trillion annually,” Saylor said in the document.
If the US fails to act immediately and buy BTC at low prices below $100,000, the initiative may be intercepted by other countries, institutional and private investors. Still, critics of this plan argue that such a huge accumulation of Bitcoin by just one country is totally opposite to the decentralized ethos of Bitcoin set up by Satoshi and could bring on an undesirable centralization of power over the largest crypto. The persistent recommendation made by Saylor to Trump and his top government executives seems to have added oil to the fire of concerns that in the future, the government may begin to control the Bitcoin market.
Strategy itself has been following this plan already since 2020, making regular Bitcoin purchases and raising additional billions of dollars to offer Bitcoin exposure to institutional investors. As of March 2025, Saylor’s company holds as much as 499,000 Bitcoin, planning to push its holdings past the half-million BTC level.
However, the market will attentively monitor the next US government Bitcoin policy developments and changes in the broader macroeconomic landscape and will adapt as it always has. For those looking to navigate these shifts, platforms like Margex provide a secure and user-friendly way to buy Bitcoin and stay ahead of market trends.
