The presence of President Trump”s executive order creating a U.S. Strategic Bitcoin Reserve to “end the last existential risk of bitcoin” has removed it, said Bitwise Chief Investment Officer Matt Hougan. The cryptocurrency is now amounting to 1.3 percent of the estimated $128 trillion global money supply.

Hougan, who has observed Bitcoin since its inception, believes that this new executive order makes Bitcoin more widely accepted as the world”s major cryptocurrency. In a client report he sent on Tuesday, the author recounts he discovered Bitcoin when it surpassed $1 value back in 2011.

Trump’s Executive Order: A Game-Changer for Bitcoin

Investors during that period faced unclear rules about the asset while dealing with ownership concerns plus advanced technology difficulties. Hougan reports that Bitcoin has a safer investment setting today than ever before.

Through various obstacles, Bitcoin has advanced as a digital currency, starting with unstable trading services and progressing to fight money laundering.

Institutional custodians like Fidelity and spot Bitcoin ETFs launched in 2022 have given official approval to crypto investments for big financial institutions. For a long time, federal interference appeared like an unavoidable danger to Bitcoin users until Trump took action.

On March 6, Trump ordered federal agencies to use the Bitcoin they have collected through legal cases to make a reserve fund worth $17.6 billion. With funds that must go back to crime victims deducted, the plan total will contain 103,500 BTC. The returned BTC of 94,636 will be delivered back to Bitfinex following the Bitfinex hack.

Bitcoin’s Role in U.S. Financial Infrastructure

The order requires Secretary Bessent of the Treasury and Secretary Lutnick of Commerce to find affordable methods to obtain Bitcoin for public use. The strategies for buying Bitcoin include the U.S. Treasury Exchange Stabilization Fund and SPDRs from the International Monetary Fund to build the new Federal Crypto Wallet.

Hougan views the move as evidence that Bitcoin will become a permanent part of our financial infrastructure. According to him, the ideal outcome is to maintain the US dollar as the global reserve currency system. People should move towards Bitcoin as a more stable alternative to Chinese yuan.

The executive order changed how institutions handle their money. Bitwise sees raising Bitcoin investments by their clients from 1% holdings two years ago to 3% allocations today. The rate of Bitcoin investment by individuals will increase when they understand the government”s official stance.

Creating the U.S. Strategic Bitcoin Reserve marks an important turning point for cryptocurrency markets and government financial planning. The U.S. government legitimizes Bitcoin”s global economic role by adding it to their strategic asset collection. The new Bitcoin risk outlook boosts its planned growth across institutional and global financial sectors.