According to data from CoinGecko, BTC has dropped 5% in the past 24 hours after American President Donald Trump signed the most-awaited executive order to create a national Bitcoin strategic reserve.
But why has the coin plummeted despite the positive development? Well, many crypto enthusiasts expected that the US government would acquire more BTC after establishing the reserve. However, White House crypto and AI czar David Sacks wrote on X that the Bitcoin reserve will only contain BTC acquired from criminal cases.
Sacks’ tweet caused Bitcoin to drop from $90,500 to $85,573. But the largest coin by market cap has recovered to $88,187 at press time.
US Government Announces ‘Digital Asset Stockpile’
It is worth mentioning that Sacks said Trump’s administration will adopt ‘budget-neutral’ strategies to purchase Bitcoin in the future. This, however, hasn’t discouraged traders from selling the news. Crypto researcher on X, The Kobeissi, says Bitcoin could experience a recovery rally if Sacks explains how Trump’s government will finance its Bitcoin purchases.
Alongside the BTC reserve, a ‘national digital asset stockpile’ consisting of cryptocurrencies like Ethereum, Solana, Cardano, and XRP will be established. It will also hold crypto assets seized from criminals.
Following Sacks’ digital asset stockpile announcement, Ethereum has plunged 4.3%, while XRP, Solana, and Cardano have fallen 7%, 5.1%, and 9%, respectively.
Industry Players See the Positives
Although Trump’s executive order has fallen short of the expectations of many, some industry players are surprised by the negative reaction. On Friday morning, Electric Capital boss Avichal claimed on X that most crypto users had no idea of what the order meant for Bitcoin. He argued that the Bitcoin reserve would legalize BTC leading to its mass adoption, which could cause a rally to $400,000.
Similarly, popular trader Ash Crypto tweeted that the US government’s crypto reserve will likely encourage other countries to follow suit, increasing demand for the asset, whose price could rise to $200,000 this year.
Finally, Satoshi Action Fund founder Dennis Porter is optimitic that the US government will buy more BTC for its reserve before the end of 2025.
