Bitcoin drops after US President orders strategic crypto reserve
Shafaq News/ Bitcoin fell more than 5% following reports that US President Donald Trump signed an executive order on Thursday to establish a strategic reserve of the cryptocurrency.
According to David Sacks, the White House's cryptocurrency advisor, the executive order will create a strategic Bitcoin reserve managed by the US government, marking significant support for the cryptocurrency industry.
Sacks revealed in a post on X that over the past decade, the federal government sold approximately 195,000 bitcoins for proceeds of $366 million. If the government had held the bitcoin, it would be worth over $17 billion today.
“With a fixed supply of 21 million coins, there is a strategic advantage to being among the first nations to create a Strategic Bitcoin Reserve,” the White House pointed out.
However, Bitcoin's price dropped as much as 5.7% following the announcement, as markets expressed disappointment over the lack of a broader government purchasing program for cryptocurrencies.
