#BitcoinPolicyShift
Bitcoin fell after US President Donald’s executive order disappointed markets. The decline in cryptocurrencies mirrors the downtrend in the US stock markets amid fears of a widening global trade war.
US President Donald Trump signed an executive order to establish a Strategic Bitcoin Reserve on Thursday, according to the White House Crypto and AI czar David Sacks, in a post on X.
The move marks a major policy fulfillment by the US president, aligning with his campaign pledge to “make America the crypto capital of the world.”
Markets disappointed by Trump’s order
Despite initial anticipation, the announcement failed to provide Bitcoin with a significant boost. Bitcoin’s price fell from above $90,000 (€83,290) to about $84,600 (€78,300) initially before rebounding to around $87,000 (€80,520) at 5 am CET.
The order disappointed crypto enthusiasts as Sacks said in the post that the Reserve would be capitalised with Bitcoin owned by the federal government from criminal and civil forfeiture cases, and taxpayer money would not be used to acquire cryptocurrencies. “The government will not acquire additional assets for the Stockpile beyond those obtained through forfeiture proceedings,” he stated.
The statement also emphasised that the government will retain its existing 200,000 bitcoin holdings as a store of value:“ The US will not sell any bitcoin deposited into the Reserve. It will be kept as a store of value,” and “Premature sales of bitcoin have already cost U.S. taxpayers over $17 billion in lost value. Now the federal government will have a strategy to maximize the value of its holdings.”
Trump’s order also includes the establishment of a US Digital Asset Stockpile, “consisting of digital assets other than Bitcoin forfeited in criminal or civil proceedings.”