Cryptocurrency markets observe: experts share their insights after Trump's latest move.

Cryptocurrencies remained in the red on Friday, but reduced most of the sharp losses from the previous day after President Donald Trump signed an executive order establishing a strategic reserve of bitcoin (SBR) for the United States, along with a separate "stock of digital assets".

Bitcoin fell 2.5% in the last 24 hours, to $2,224,934,049,889.250 at 6:38 ET. The leading cryptocurrency briefly dropped to $2,224,934,049,884.688.13 on Thursday after news of the reserve emerged.

Other major tokens, including Ether, XRP, Solana's SOL, and Cardano's ADA, traded lower but also reduced previous losses. These assets recovered earlier in the week after Trump signaled that they would be included in the new strategy.

David Sacks, the White House crypto and AI czar, said in a post on X that the Bitcoin reserve will consist of assets that the U.S. government already holds, primarily from seizures by law enforcement authorities. He emphasized that this approach “will not cost taxpayers a dime”.

According to Arkham, the U.S. currently holds over 198,000 bitcoins, valued at approximately $2,224,934,049,817 billion.

The separate stock of digital assets will include “digital assets other than bitcoins lost in criminal or civil proceedings,” Sacks said.

He also noted that the government does not plan to acquire additional assets beyond those obtained through confiscation. Arkham data indicates that the U.S. holds about 56 ether tokens worth nearly $2,224,934,049,811.9 million, though it does not list holdings of XRP, Solana, or Cardano.

The initial market reaction on Thursday reflected investors' disappointment with the lack of immediate Bitcoin purchases by the government, mainly amid the overall weakness of stocks.