▲ Bitcoin (BTC), Short Positions / ChatGPT-generated image

As the White House moves forward with plans to stockpile Bitcoin (BTC) as a national strategic asset, investors who had bet on price declines are facing hundreds of millions of dollars in forced liquidations, sending unprecedented shockwaves through the market.

According to crypto-focused outlet BeInCrypto on March 5 (local time), as soon as news broke that the Donald Trump administration was considering Bitcoin as a national strategic reserve asset, a massive wave of bearish positions collapsed. The move is interpreted as a strong signal that the U.S. government intends to directly secure leadership in the digital asset market, swiftly eliminating much of the prevailing uncertainty. Short sellers who had anticipated declining prices were unable to respond quickly to the unexpected announcement, recording substantial losses.

Data from a digital asset analytics platform shows that more than $250 million in liquidations occurred over the past 24 hours from positions betting on Bitcoin’s decline. As Bitcoin broke through key price levels, cascading liquidations accelerated the rally in a classic short squeeze. Bitcoin swiftly surpassed major resistance levels, and global investors are now closely watching the White House’s specific reserve scale and implementation timeline.

President Trump recently stated in a public address that “the United States must become the crypto capital of the planet, and a strategic Bitcoin reserve is central to that vision,” signaling a significant policy shift. The White House National Economic Council is reportedly in-depth discussions about incorporating Bitcoin into federal reserve assets, a move seen as a new strategy to complement the value of the U.S. dollar. Should government-level purchases materialize, the circulating supply in the market could shrink sharply.

Crypto strategists view this policy as more than a catalyst for price appreciation, describing it as the final stage in Bitcoin’s integration into the institutional framework. Even conservative capital that previously dismissed Bitcoin as speculative is reportedly rushing to rebalance portfolios following news of the government reserve plan. Retail investors who had bet on a downturn now find themselves up against massive government capital, and market volatility is expected to intensify further as policy details are finalized.

The White House’s latest move is expected to trigger a competitive race among other nations to build up digital asset reserves. If the United States begins stockpiling Bitcoin preemptively, the status of digital assets within the global economic order could be fundamentally transformed. Investors are closely monitoring real-time policy developments, preparing for the possibility that an official government announcement could permanently alter the market’s supply-demand structure.

Disclaimer: This article is for investment reference only and we are not responsible for any losses incurred based on it. The content should be interpreted for informational purposes only.

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