Bitcoins
Bitcoin’s price tumbled after US President Donald Trump made a pledge not to sell any of the government’s current Bitcoin holdings but made no firm commitment to buy more.
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Bitcoin plunged approximately 6% after US President Donald Trump signed an executive order to establish a Strategic Bitcoin Reserve.
Market participants had hoped the government would announce a plan to buy more Bitcoin (BTC), but Trump’s crypto tsar David Sacks said on X it would only use the Bitcoin it already holds from criminal cases — though it will look to develop “budget-neutral” strategies to acquire additional Bitcoin.
Bitcoins Bitcoin price slides after announcement
Bitcoin dropped about 6%, falling from $90,400 to $84,979, according to CoinMarketCap data.
Bitcoin has slightly recovered since, trading at $86,460 at the time of publication. Source: CoinMarketCap
Trading resource account The Kobeissi Letter said the reason for the Bitcoin price drop was there was “no explanation on how the reserve will be funded aside from Bitcoin already held by the US.”
Ether (ETH), XRP (XRP), Solana (SOL) and Cardano (ADA) also fell on the news after Sacks confirmed that there will be a “US Digital Asset Stockpile,” but also only consist of digital assets forfeited in criminal or civil proceedings.
“The government will not acquire additional assets for the Stockpile beyond those obtained through forfeiture proceedings,” Sacks said.
In the first hour after Sacks’ announcement, Ether had dropped 4%, XRP fell 7%, Solana had fallen 5.14%, and Cardano had slid 9.19%.
Bitcoins Industry participants see the positives
While it may not be the most optimistic announcement for the industry, some were surprised that Bitcoin’s price plunged after the announcement.
Electric Capital CEO Avichal said in an X post shortly after, “Who the hell sells the news of a US Strategic Bitcoin Reserve?!”
Source: Walker
Echoing a similar sentiment, pseudonymous crypto trader Ash Crypto said in an X post, “THIS IS NOT BUY THE RUMOR SELL THE NEWS EVENT, EVERY COUNTRY WILL FOLLOW SOON AND BITCOIN IS GOING TO $250,000+”
Satoshi Action Fund CEO Dennis Porter added, “This market is way off. The ‘Strategic Bitcoin Reserve’ will have “additional bitcoin” acquisitions.”
Other participants agree that it is a positive step that will only bolster greater adoption of Bitcoin.
Source: Matt Hougan
Cointelegraph by Ciaran Lyons Read More