Bitcoin dropped 6 percent after Trump’s directive on Friday, lacking intentions for government Bitcoin purchases
U.S. President Donald Trump’s executive order to create a Bitcoin strategic reserve, along with a stockpile of additional digital assets, has not succeeded in captivating the crypto markets, as Bitcoin’s value significantly dropped following the announcement.
Bitcoin experienced a decline of as much as 6 percent after Trump’s directive was issued on Friday, which notably did not include intentions for the government to actively purchase Bitcoin.
After reaching a low of $84,900, the cryptocurrency was trading at approximately $84,483 as of 08:00 GMT. Trump’s order was announced after he consistently highlighted intentions to develop a cryptocurrency stockpile or reserve as part of his commitment to transform the U.S. into the “crypto capital of the planet.”
The executive order positions the U.S. among the few nations globally to establish a national stockpile of blockchain assets. The reserve will contain cryptocurrency forfeited to the federal government through criminal or civil proceedings, according to White House AI and crypto advisor David Sacks, who shared details in a post on X. The U.S. will not liquidate any Bitcoin stored in the reserve, Sacks stated, opting instead to maintain it as an asset. Trump—who just four years ago described Bitcoin as “seems like a scam”—now asserts his intention to make the U.S. “the Crypto Capital of the World.”
Read more: Risk-off sentiment drives Bitcoin price down to just above 88,000, lowest level since November
Further details expected during first crypto summit
More information is anticipated as the president is scheduled to host the first crypto summit at the White House on Friday. It remains uncertain whether the proposed reserve could encounter legal obstacles or if it might necessitate Congressional action. Sacks indicated that the stockpile would act as “a digital Fort Knox for the cryptocurrency,” drawing parallels to a Kentucky military facility that secures a considerable portion of U.S. gold reserves.
Trump’s order also establishes a stockpile for digital assets other than Bitcoin that have been forfeited. It mandates a comprehensive accounting of the federal government’s crypto holdings, which Sacks estimated to be around 200,000 Bitcoin alone. At current valuations, this amounts to $17.5 billion.
Unclear benefits for American taxpayers
While it was not apparent how the new stockpile would serve the interests of Americans, Sacks assured that it “will not cost taxpayers a dime.” His suggestion that the U.S. government would not acquire Bitcoin contributed to a decline in the price of the world’s leading cryptocurrency, which fell by over 5 percent.
Several nations maintain strategic reserves of national assets to diversify government holdings and mitigate financial risks. The U.S. also possesses a petroleum reserve, and Canada maintains a maple syrup reserve.
Earlier this week, Trump disclosed the names of five cryptocurrencies he expressed interest in including in the strategic reserve. The market values of the five coins mentioned—Bitcoin, Ethereum, XRP, Solana, and Cardano—quickly surged following that announcement.
