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Cryptocurrency fell Thursday night after President Donald Trump signed an executive order to create a strategic Bitcoin reserve for the US and create separate “digital asset reserves.”
Prices Bitcoin Lastly, it was 3% lower at $87,586.86, according to Coin Metrics. Soon after the news broke, it was as low as $84,688.13.
The early losses of other coins, especially those collected at the beginning of the week after Trump said he was included in the strategy, were also eased. ether It fell 2%, trading at $2,184.08. XRP And Solana’s Sol Tokens have retreated by 1% and 3% respectively. Cardano Ada The token fell 13%.
Bitcoin (BTC)
In a post from X, White House Crypto and Ai Czar David Sacks detailed that the Bitcoin Reserve includes Bitcoin already owned by Bitcoin, which has been seized from past law enforcement actions. According to Arkham, the US currently owns over 198,000 Bitcoin worth around $17 billion.
Other coin stockpiles include “non-Bitcoin digital assets confiscated in criminal or civil lawsuits.” Sachs said the government would not acquire additional assets “beyond what was obtained through the forfeiture proceedings.” Arkham data shows that the US government owns around 56 ether tokens, about $119 million. Does not list XRP or Solana or Cardano tokens.
Investors initially dumped coins on the US concept. In response to the order, they had not planned an immediate plan for Bitcoin against the backdrop of major weaknesses in the stock.
“That’s good news, but it’s not what the market wanted in the short term,” said Steven Lubka, head of the private client and family office at Swan Bitcoin. “People wanted short-term buying pressure.”
Sacks notes that the Treasury and Commerce Secretaries are permitted to develop a budget-neutral strategy to acquire additional bitcoin if these strategies do not have incremental costs for US taxpayers, and that there are no plans to accumulate additional assets to accumulate crypto stock beyond those already obtained by the government.
The announcement comes days after Trump teased one of his biggest promises to the crypto industry on his campaign trail and new details of the highly anticipated Bitcoin Reserve, which became one of his biggest promises on the eve of the first White House Script Summit.
The crypto market was shaken this week by tariff wars and inflation concerns. This largely hides the speculative excitement of the Bitcoin Reserve. JPMorgan said Wednesday that it does not believe there will be a high movement in cryptography in the near future given the wider economic uncertainty and lower demand.
Bitcoin temporarily returned to its $90,000 key level earlier this week, hovering just below it. Investors and analysts warn that there is a risk of a major drawback to $70,000 until Bitcoin can hold anything more meaningful than that.
