President Donald Trump signed an executive order on February 3, calling for the creation of a sovereign wealth fund. 

This follows his previous order establishing a national digital asset stockpile, signaling an increased focus on strategic financial reserves.

Bitcoiners Eye Trump’s Sovereign Wealth Fund

The executive order directs the Secretary of the Treasury and the Secretary of Commerce to devise a comprehensive plan within 90 days for creating the fund. 

“The United States can leverage such returns to promote fiscal sustainability, lessen the burden of taxes on American families and small businesses, establish long-term economic security, and promote US economic and strategic leadership internationally,” the order read.

For context, sovereign wealth funds are state-owned investment funds that manage surplus reserves. These are typically sourced from trade surpluses, commodity revenues, or fiscal excesses. 

These funds are invested in a diverse range of assets, including stocks, bonds, real estate, and infrastructure, both domestically and internationally. The goal is to ensure long-term financial stability and economic growth.

Although the executive order did not explicitly mention Bitcoin (BTC) or other cryptocurrencies, the announcement sparked enthusiasm among Bitcoin advocates because of Senator Cynthia Lummis’ response. Lummis, a well-known advocate for the Strategic Bitcoin Reserve and chair of the Senate Banking Sub-committee on Digital Assets Committee, reacted to the news on X (formerly Twitter).

“This is a ₿ig deal,” she posted.

Her use of the “₿” symbol fueled hopes of Bitcoin’s inclusion in the fund.

“After Trump signs the order, US will buy Bitcoin for sovereign wealth fund and they will call it as strategic Bitcoin reserves,” one user replied on X.

Notably, the market odds of Trump establishing a Bitcoin reserve in the first 100 days on the prediction platform Polymarket improved to 18% after the order. The odds plummeted from 48% on Inauguration Day to 13% by February 1.

Trump’s earlier executive order on the digital asset stockpile also broadly defined “digital assets” without explicitly mentioning Bitcoin.

“The term “digital asset” refers to any digital representation of value that is recorded on a distributed ledger, including cryptocurrencies, digital tokens, and stablecoins,” the order stated.

Crypto Momentum Grows at State Level

Meanwhile, amid the speculation, several US states are advancing their own cryptocurrency initiatives. Oregon, New Jersey, Mississippi, and Indiana have recently introduced bills to foster crypto adoption and regulatory clarity.

Oregon’s HB2071 grants blockchain users specific rights. It prevents state and local governments from restricting digital asset activities. It also exempts certain blockchain transactions from the Oregon Money Transmitters Act.

New Jersey Assembly Bill 2249 (Digital Asset and Blockchain Technology Act) establishes a regulatory framework for digital asset businesses and creates a Digital Asset Enforcement Fund for oversight.

Mississippi’s HB 1590 (Blockchain Basics Act) prohibits state and local governments from implementing central bank digital currency (CBDC) and safeguards self-custody rights. It also exempts crypto transactions under $200 from capital gains tax and removes licensing requirements for mining and staking operations.

Indiana House Bill 1156 protects the right to use, store, and accept digital assets. It prevents local restrictions on crypto transactions and ensures digital asset mining is classified as a permitted industrial activity.

Indiana has also previously introduced House Bill 1322, which promotes blockchain adoption and Bitcoin investment strategies.

According to Michael Saylor, MicroStrategy finally broke its 12-week streak of consecutive weekly Bitcoin purchases. The firm did not sell any shares of Class A common stock this week, nor did it use proceeds to buy BTC.

The firm may owe billions of taxes on its unrealized gains, and Bitcoin’s price is proving extremely volatile due to US tariffs and political instability. However, Saylor gave very little indication of MicroStrategy’s next move.

MicroStrategy Stops Buying Bitcoin

Since Michael Saylor began directing MicroStrategy to acquire Bitcoin, the firm has become one of the world’s largest BTC holders.

Since late October, the firm has made at least one purchase every week, going from huge buys to slowly diminishing acquisition sizes. MicroStrategy began issuing more shares to ramp up the acquisitions, but Saylor just announced a general pause:

“Last week, MicroStrategy did not sell any shares of Class A common stock under its at-the-market equity offering program, and did not purchase any Bitcoin. As of February 2, 2025, we hold 471,107 BTC acquired for ~$30.4 billion at ~$64,511 per Bitcoin,” Saylor claimed.

This announcement has left the community somewhat confused. In December, there were credible rumors that MicroStrategy may pause its Bitcoin purchases in January.

However, this pause did not happen, and the company’s acquisitions actually increased towards the end of the month. So, it’s surprising that the firm halted its purchases, seemingly when the BTC price presented notable buying opportunities last week.

A few factors may have contributed to this switch in tactics. For one thing, Bitcoin’s value is in a tough spot. Since the threat of US tariffs against Mexico, Canada, and China, it and the broader crypto market took a nosedive.

With further economic chaos looming on the horizon, MicroStrategy may take a conservative approach to Bitcoin investment.

There is also another factor. Although BTC took a dive today, it’s been in a sustained bull market otherwise. MicroStrategy may owe billions in unreleased gains regarding its Bitcoin prices, which would add more complexity to a delicate situation.

For now, it’s difficult to predict where the company will go from here.

One important consideration is the pause on stock sales alongside BTC buys. MicroStrategy has been using these to fund its Bitcoin accumulation, and the firm may stop committing so heavily to the asset.

Michael Saylor did not give any direct indication of whether it will resume these purchases soon. Many factors are in the air right now, but the firm remains committed to its Bitcoin-first strategy.

Financial author and investor Robert Kiyosaki urges investors to seize the moment as Bitcoin (BTC) plummets following US President Donald Trump’s newly imposed tariffs.

Bitcoin’s latest drop caused massive liquidations across the crypto market, marking a new historic crash.

Robert Kiyosaki Urges Investors to Buy Bitcoin Now

The renowned author of Rich Dad Poor Dad took to social media to express his views. He called the current market drop an excellent opportunity for those looking to build wealth.

“Brutal crash here now. The stock, bond, real estate, gold, silver, and Bitcoin markets are crashing. The best assets in the world are going on sale. Millions will lose their jobs. This is the best time to get rich. Do not be a loser. Stay cool. Take care,” Kiyosaki stated in the post.

Indeed, Bitcoin fell as much as 4.3% between Sunday and the early hours of the Asian session on Monday. It dropped below $93,000 for the first time in three weeks. BeInCrypto data shows BTC was trading for $95,810 as of this writing, a modest recovery since the Monday session opened.

Meanwhile, this sharp downturn is largely attributed to US President Donald Trump’s new trade tariffs, announced over the weekend. The administration imposed a 25% levy on imports from Canada and Mexico and a 10% tariff on Chinese goods. This caused widespread panic in financial markets, with crypto liquidations reaching above $2 billion on Monday.

“Trump’s tariff war is impacting the whole market. Concerns about trade wars and stagflation, triggering recessions, are cascading across altcoins and Bitcoin,” BTC Markets CEO Caroline Bowler told Bloomberg.

The tariffs have set the stage for what could be a prolonged trade war, with Canada, Mexico, and China all expected to retaliate. As a result, investors appear to be fleeing high-risk assets, including Bitcoin and crypto in general.

Market analysts warn that these tariffs will affect approximately $1.3 trillion of US trade, potentially significantly increasing costs for American consumers and businesses.

“The trade war is live: New tariffs from President Trump are set to impact $1.3 trillion worth of US trade. The US stock market has lost over -$1.5 trillion of market cap with ~43% of all US imports soon subject to tariffs,” capital market writer Kobeissi Letter observed.

Despite the widespread market turmoil, Kiyosaki remains bullish on Bitcoin and other assets. He has consistently warned of a market selloff, and as BeInCrypto reported recently, he predicted that Bitcoin would fall in tandem with the stock market downturn.

He believes that downturns like these create wealth-building opportunities for those prepared to invest when prices are low. Kiyosaki’s investment philosophy, which emphasizes buying assets during periods of fear and selling during euphoria, aligns with his latest advice to investors.