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Why did Bitcoin drop after Trump signed the decision to create a strategic reserve of it?

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Published: March 7, 2025 03:31

Last updated: March 7, 2025 10:35

Bitcoin dropped after the U.S. digital asset official, David Sachs, indicated that the government would not use taxpayer money to fund a strategic reserve of digital assets, which was ordered by President Donald Trump.

Bitcoin fell by 5.7% during trading before reducing its losses to 2.1% at $87,927 by 10:19 AM Singapore time. Ethereum (Ether), XRP, Cardano, and Solana also declined by more than 2%.

Trump signed a long-awaited executive order to create a strategic reserve of Bitcoin, according to a post on X by Sachs, noting that this reserve will be funded from Bitcoin already held by the U.S. government.

Sachs also mentioned that the reserve will include a separate stock of other digital assets.$BTC