Trump Signs Bitcoin Strategic Reserve Order, Market Crashes! BTC and Cryptocurrency Stocks Suffer Major Setback

The executive order signed by Trump announces the establishment of a strategic reserve using Bitcoin confiscated by the U.S. government, a decision that quickly triggered market panic, leading to a plunge in Bitcoin and related crypto assets. Bitcoin's price dropped by 5%, swiftly falling to $85,000, while MSTR also saw a decline of over 7%.

⚡ Trump's Decision Sparks Controversy

White House cryptocurrency advisor David Sachs released a statement saying that the U.S. will no longer sell the 200,000 Bitcoins it holds but will treat them as a "store of value," similar to "digital gold." Nevertheless, Trump did not clearly explain the details of the strategy, leaving many Bitcoin supporters disappointed, believing that this move could undermine Bitcoin's long-term position.

❌ Opposition to the Crypto Asset Reserve Plan

When announcing the reserve plan, Trump mentioned including other currencies such as **XRP, Solana (SOL), Cardano (ADA)** in the reserve, which displeased the Bitcoin community. Industry figures such as Tyler Winklevoss and Nick Carter stated that Bitcoin is the only suitable strategic reserve asset. The inclusion of other currencies makes Bitcoin appear as a "speculative fund" rather than a serious national reserve.

📉 Market Crash, Investor Panic

Following the release of this order, the U.S. stock market faced a severe blow, with the Nasdaq index dropping by 8% and the S&P 500 index falling by 4.3%. Meanwhile, Bitcoin has fallen 18% since Trump took office, with Ethereum and other cryptocurrencies also experiencing varying degrees of decline. MSTR suffered significant losses after Bitcoin's crash, with a decline of over 7%.

🛑 Government's Historical Mistake of Selling Bitcoin at Low Prices

The decision of the Trump administration sparked a discussion about the U.S.'s past of selling Bitcoin at low prices. Sachs stated that the U.S. government sold 195,000 Bitcoins at low prices over the past decade, and if they had been held until now, their value would have reached $17 billion. The order aims to avoid similar "historical mistakes" and to protect Bitcoin's long-term value through strategic reserves.