Cryptocurrency markets took a hit as Bitcoin fell by as much as 6 percent following an executive order by US President Donald Trump to establish a Bitcoin strategic reserve and a stockpile of other digital assets. The announcement did not include plans for the government to actively purchase Bitcoin, disappointing investors.
The order, announced by Trump’s crypto tsar David Sacks, proposed a “Strategic Bitcoin Reserve” and “Digital Asset Stockpile” to be funded with assets forfeited in criminal or civil proceedings, with the aim of not costing taxpayers anything. The order also directed a full accounting of the federal government’s digital asset holdings and called for budget-neutral strategies to acquire additional Bitcoin, provided they do not cost US taxpayers.
However, some in the crypto community were unimpressed with the announcement, with tech entrepreneur Shayan Salehi describing it as potentially causing a bear market, and Spencer Hakimian of Tolou Capital Management calling it underwhelming. The US government currently owns an estimated 200,000 Bitcoin seized through forfeiture, and Sacks suggested the reserves could act as a “digital Fort Knox” to maintain the value of Bitcoin.
In addition to a Bitcoin reserve, the order also outlined plans for a stockpile of other digital assets such as ether, XRP, Solana, and Cardano. Trump’s support for cryptocurrency, which led to a spike in Bitcoin’s value after his election, has come under scrutiny, especially as his family has invested in crypto assets. Critics have raised concerns about the intrinsic value of cryptocurrencies and compared their rise to a Ponzi scheme.
Note: The image is for illustrative purposes only and is not the original image associated with the presented article. Due to copyright reasons, we are unable to use the original images. However, you can still enjoy the accurate and up-to-date content and information provided.
