K33 Analysts: U.S. Bitcoin Reserve Plan Could Reignite Market Sentiment Post-Tariff Volatility

As markets remain volatile amid U.S. President Donald Trump's aggressive trade policy announcements, analysts at K33 Research say that focus could soon shift back to a major bullish narrative — the U.S. Strategic Bitcoin Reserve plan.On April 2, Vetle Lunde, Research Director at K33, and David Zimmerman, Senior Analyst, said in a market note that ongoing tariff headlines have overshadowed progress on the Bitcoin Reserve initiative, but this narrative is likely to regain center stage once the geopolitical noise settles.U.S. Bitcoin Reserve Strategy: Report Due April 5The executive order signed by Trump on March 6 mandates the creation of a "U.S. Strategic Bitcoin Reserve" using approximately 200,000 BTC (worth $17 billion at current prices) seized via civil or criminal forfeiture, with funds allocated to reimburse victims of financial crimes.By regulation, federal agencies are required to submit a legal authority report by April 5, detailing whether and how these digital assets can be moved into a federally managed strategic reserve.The executive order also tasks Treasury Secretary Scott Besent and Commerce Secretary Howard Rutnik with crafting a budget-neutral strategy to acquire and manage the Bitcoin holdings — meaning no direct taxpayer funding will be used.Key Timeline AheadApril 5: First formal report due on federal authority to hold and manage seized digital assets.May 5 (approx.): Deadline for Besent's legal and investment framework report outlining the acquisition strategy.Mid-to-late May: A crypto summit may be convened to discuss the role of Bitcoin in the U.S. economy, potentially serving as a catalyst for renewed bullish sentiment.Market Implications"Once tariff-driven macro volatility subsides, we expect attention to swing back toward the U.S. Bitcoin Reserve narrative, which could rekindle investor enthusiasm," Lunde and Zimmerman noted.Analysts say the legal confirmation of BTC holdings by a nation-state, particularly the United States, would mark a historic milestone for Bitcoin’s legitimacy as a reserve asset, fueling speculation and potentially driving prices higher.