Cryptocurrencies experienced a notable decline Thursday evening following the signing of an executive order by President Donald Trump, aiming to establish a strategic bitcoin reserve and a “digital asset stockpile” for the United States. Bitcoin’s price fell 3%, landing at $87,586.86, although it briefly dipped to $84,688.13 right after the announcement, according to Coin Metrics. This downturn affected other digital currencies; Ether dropped by 2% to $2,184.08, and both XRP and Solana’s SOL token receded by 1% and 3%, respectively. Notably, Cardano’s ADA token plunged 13%.
David Sacks, the White House crypto and AI czar, shared on platform X that the bitcoin reserve would include bitcoins already owned by the U.S. government, amassed through past law enforcement actions. He highlighted that this strategy would not burden taxpayers financially. Currently, the U.S. government holds over 198,000 bitcoins, valued at approximately $17 billion, as reported by Arkham. The digital asset stockpile will consist of assets like those forfeited in criminal or civil cases, specifically excluding any new asset acquisitions outside these forfeiture proceedings. The government possesses about 56 ether tokens, valued near $119 million, but does not list ownership of XRP, Solana, or Cardano tokens.
Initial investor reactions were negative, primarily due to the absence of immediate plans for further bitcoin purchases, a development perceived as unfavorable against a backdrop of weakening equity markets. Steven Lubka, the head of private clients and family offices at Swan Bitcoin, commented, “It is good news, but not what the market wanted in the short term. People were hoping for near-term buy pressure.” Sacks clarified that while strategies could be developed to buy additional bitcoin, they must be budget-neutral and not impose any additional costs on taxpayers. The government has no plans to acquire more cryptocurrency for the stockpile beyond those obtained through legal forfeiture.
This announcement closely followed days of anticipation as Trump hinted at additional details about the bitcoin reserve, a major talking point in his campaign for the crypto industry, and arrived just before the inaugural White House Crypto Summit. Meanwhile, the crypto market struggled amid ongoing concerns about tariffs and inflation, factors that have mired optimism surrounding the bitcoin reserve’s potential. JPMorgan issued a report on Wednesday projecting limited upward movement for cryptocurrencies in the short term due to prevailing economic uncertainties and decreasing demand.
Bitcoin managed a brief return to the critical $90,000 mark earlier in the week yet remains just beneath this level. Both investors and analysts are cautious, suggesting that unless bitcoin can firmly maintain this price, there remains a possibility of a larger fallback to $70,000. Despite these setbacks, the digital currency market continues to be a focal point of interest, with stakeholders closely monitoring developments in national crypto policy. As investors brace for more clarity on these strategic moves and their implications, the evolving narrative of cryptocurrencies in the U.S. landscape remains a key subject.
Categories: Finance, Cryptocurrency
Tags: Cryptocurrencies, Bitcoin, U.S. Government, Executive Order, Digital Assets
Original Source: https://www.cnbc.com/2025/03/07/crypto-market-today.html
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Publish Date: 2025-03-07 09:10:00
