Cryptocurrency experiences a decline of up to 6 percent as investors are left disappointed by the absence of government plans to purchase digital assets.
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US President Donald Trump’s executive order, which aimed to establish a Bitcoin strategic reserve and a stockpile of other digital assets, did not have the desired impact on crypto markets. Bitcoin’s value plummeted following the announcement.
Following the order issued on Thursday, Bitcoin dropped as much as 6 percent. The cryptocurrency fell to as low as $84,900 before recovering slightly to $87,700 as of 05:00 GMT.
David Sacks, Trump’s crypto advisor, stated that the “Strategic Bitcoin Reserve” and “Digital Asset Stockpile” would be funded using assets seized in criminal or civil proceedings and would not require taxpayer funds.
Sacks mentioned that the US government is believed to own approximately 200,000 Bitcoins, although there has never been a complete audit. The executive order mandates a full accounting of the federal government’s digital asset holdings.
Sacks also highlighted that the order instructs the Secretaries of Treasury and Commerce to develop strategies for acquiring additional Bitcoin without any cost to US taxpayers.
Trump had previously indicated plans to establish a cryptocurrency stockpile or reserve as part of his commitment to transforming the US into the “crypto capital of the planet” during his presidency.
However, not all crypto enthusiasts shared the same level of enthusiasm.
Shayan Salehi, a German tech entrepreneur, described the announcement that the government would not acquire additional assets as potentially triggering a bear market in his statement.
Spencer Hakimian, the founder of Tolou Capital Management, labeled the plan as “very underwhelming” and emphasized that it would not involve the federal government buying any new Bitcoin unless it could be done in a revenue-neutral manner.
The US is estimated to possess around 200,000 Bitcoins that have been confiscated during criminal and civil forfeiture proceedings.
Sacks suggested that the reserve would resemble the “digital Fort Knox” by helping maintain Bitcoin’s value, emphasizing that premature sales of Bitcoin have already led to a loss of over $17 billion for US taxpayers. The
Source: https://www.aljazeera.com/economy/2025/3/7/bitcoin-plunges-as-trumps-strategic-reserve-fails-to-impress-markets?traffic_source=rss
