Bitcoin fell by as much as 6% on Thursday following an executive order from US President Donald Trump aimed at establishing a “Strategic Bitcoin Reserve,” which ultimately fell short of market expectations. After the announcement, Bitcoin dropped to a low of $84,900 before slightly recovering to trade at $87,700 as of 5:00 GMT. Investors were disappointed by the order’s failure to include specific plans for government purchases.
Read More: Bitcoin Drops Over 5%, Hitting Lowest Level Since November 11
The directive, announced by Trump’s administration crypto adviser David Sacks on X, detailed a plan to fund the reserve with digital assets seized in criminal or civil cases, assuring that it would be “budget-neutral” and incur no cost to taxpayers. Sacks also mentioned that a full audit of the federal government’s Bitcoin holdings—estimated at 200,000 BTC—had been ordered. Furthermore, the Secretaries of Treasury and Commerce were instructed to develop strategies for acquiring more Bitcoin without additional taxpayer expense.
Bitcoin had previously surged after Trump’s election victory in November, reaching an all-time high of $109,071 in mid-January. However, the president’s backing of cryptocurrency has come under criticism amid reports that his family has built up billions in digital assets, including a Trump-themed meme coin launched earlier this year. Critics continue to argue that cryptocurrencies lack intrinsic value, likening their rapid rise to a speculative bubble or Ponzi scheme.
