Bitcoin Price Tumbles Following Trump’s Strategic Reserve Announcement
Bitcoin’s price has taken a significant hit in recent days, with the cryptocurrency market reacting to President Donald Trump’s announcement of a strategic bitcoin reserve. The reserve, which will utilize existing bitcoin held by the US government rather than new purchases, has sent ripples through the crypto world.
According to data from Coinbase, Bitcoin experienced a 4.2% drop, reaching approximately $79,500. The decline over the past week totals 12%, marking a notable downturn for the leading cryptocurrency. Other major cryptocurrencies, including Ether and XRP, also saw declines of about 3%, as they are not included in the bitcoin reserve.
The executive order detailing the strategic reserve has clarified that no new Bitcoin purchases will be made initially. However, it does leave room for potential future acquisitions, provided they are budget-neutral. David Sacks, the Trump administration’s “crypto czar,” emphasized that there would be no taxpayer cost for the reserve.
The government’s current bitcoin holdings are estimated at 200,000 bitcoins, valued at approximately $16.5 billion. An audit of the government’s crypto reserves has been ordered to assess the exact holdings.
The announcement has drawn criticism from some commentators who expressed disappointment over the exclusion of lesser-known coins from the strategic reserve. This comes in contrast to President Trump’s earlier statements about making the US the “Crypto Capital of the World.”
As the cryptocurrency market adjusts to this new development, the long-term impact of the reserve strategy on the broader cryptocurrency market remains to be seen. The government’s approach leaves open the possibility for future acquisitions under specific conditions, potentially shaping the future of cryptocurrency adoption and regulation in the United States.
