Bitcoin Falls On Details Of Strategic Crypto Reserve

Bitcoin fell overnight after President Donald Trump signed an executive order establishing a strategic crypto reserve—but a crucial detail disappointed investors.

The selloff came after Trump’s executive order detailed plans to establish both a strategic Bitcoin reserve and a digital-asset stockpile.

While the reserve itself should be bullish for the crypto market, the U.S. government won’t be buying any new Bitcoin, Callum Keown and George Glover reported for Barron’s Daily.

“The reserve will be capitalized with Bitcoin owned by the federal government that was forfeited through criminal or civil asset forfeiture proceedings. This means it will not cost taxpayers a dime,” White House crypto czar David Sacks announced in a social media post.

The selloff came after Trump’s executive order detailed plans to establish both a strategic Bitcoin reserve and a digital-asset stockpile.

In another post, the President specifically named Ether, XRP, Solana, and Cardano as the cryptocurrencies that would be included in the stockpile. The revelation that no new government funds would be used to purchase Bitcoin disappointed investors.

Bitcoin has already been on a downward trend, dropping more than 7% in the past month, and is now trading about 23% below its record high from January.

The world’s largest cryptocurrency briefly fell to $85,000 late Thursday before recovering some losses. It has declined about 3% in the past 24 hours, according to data from CoinDesk.