President Trump Signed the Executive Order for Bitcoin's Strategic Reserve – Why is BTC Collapsing?
The President of the United States, Donald Trump, has just signed an executive order to establish a strategic Bitcoin reserve. This gesture marked a historic moment for the largest crypto in the world. Yet the immediate reaction of the market has been negative, with a drop in the price of BTC. Currently, Bitcoin is traded around 87,000 $, down 3% today. The market seems disappointed by the announcement of the Bitcoin strategic reserve.
Trump Signs the Executive Order To Create A Strategic Bitcoin Reserve
A post on X by David Sacks, the “czar of the crypto and artificial intelligence” of the White House, explained the matter better. In practice, the reserve will initially be financed with Bitcoin already in the possession of the federal government, estimated at around 200,000 BTC.
Sacks also stressed that the Treasury and Trade Secretaries have been commissioned to develop zero-cost strategies to acquire new Bitcoins.
And it is precisely here that the initial disappointment of the market could lie. Some traders may have bet that the executive order would also provide new BTC purchases to strengthen the strategic reserve.
Several analysts had fueled expectations that the reserve would add new demand to the market this week.
Among these, the CIO by Bitwise, Matt Hougan, had speculated that the reserve would be “bigger than people think”.
If the market continues to consider the announcement of Bitcoin's strategic reserve disappointment, BTC's price could align with the negative performance of this week's US equity markets.
