Bitcoin Price Drops 6%: What You Need to Know About Trump’s Executive Order
Bitcoin price dropped significantly by approximately 6% following US President Donald Trump‘s signing of an executive order to establish a Strategic Bitcoin Reserve. This unexpected plunge saw Bitcoin fall from $90,400 to $84,979, according to data from CoinMarketCap.
Market Reaction to the Announcement
The initial market reaction came as a shock to many crypto investors, as they had anticipated a more favorable announcement regarding the government’s Bitcoin acquisition. David Sacks, appointed by Trump as the crypto tsar, clarified on social media platform X that the US government would only utilize Bitcoin already held from criminal forfeitures, not acquire new assets. This announcement caught many by surprise, particularly those hoping for the US government to announce a plan for future Bitcoin purchases.
While some were optimistic, such as Satoshi Action Fund CEO Dennis Porter, who suggested the reserve would eventually expand, others expressed disappointment. The lack of clarity around the funding mechanism for the reserve, beyond forfeited assets, led to confusion and uncertainty among investors.
Altcoins Follow Bitcoin’s Downward Trend
The negative sentiment quickly spread across the broader cryptocurrency market. Ethereum (ETH) dropped by 4%, XRP fell by 7%, Solana (SOL) slid by 5.14%, and Cardano (ADA) saw a notable 9.19% drop within the first hour of the announcement.
A Step Toward Greater Bitcoin Adoption
Despite the immediate market downturn, some industry participants believe this development will ultimately be positive for the future of Bitcoin. Electric Capital CEO Avichal questioned the market’s reaction, highlighting the significance of a US Strategic Bitcoin Reserve. Many expect that other nations will follow suit in establishing similar reserves, potentially pushing Bitcoin toward greater mainstream adoption.
The market’s mixed response underscores the ongoing uncertainty in the cryptocurrency space. However, many analysts see the move as a long-term positive, even if the immediate effects have been less than favorable.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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