U.S. Bitcoin Reserve Plan Fails to Boost Crypto Market Confidence

Crypto Prices Waver as Trump’s Bitcoin Strategy Fails to Deliver Immediate Impact

The cryptocurrency market remained stable Friday after a dip the previous day, following President Donald Trump’s executive order establishing a strategic Bitcoin reserve and a separate “digital asset stockpile.”

At 04:58 a.m. ET, Bitcoin was priced at $88,949.16, per Coin Metrics.

Bitcoin initially fell to $84,688.13 after news of the reserve surfaced on Thursday. Meanwhile, Ether, XRP, and Solana’s SOL token, which had rallied earlier in the week, continued trading in negative territory.

David Sacks, the White House’s digital assets advisor, clarified on X that the BTC reserve would consist of BTC already seized by the government in past law enforcement cases, ensuring taxpayers won’t bear additional costs. Arkham data reveals the U.S. holds around 198,000 bitcoins, valued at approximately $17 billion.

The government’s digital asset stockpile will include confiscated cryptocurrencies other than Bitcoin, with no additional acquisitions planned. Current estimates show the government owns about 56 ether tokens worth $119 million, but it does not hold XRP, Solana, or Cardano, per Arkham’s tracking.

Investors responded negatively to the absence

Investors responded negatively to the absence of any immediate Bitcoin purchases, as many had expected stronger buying pressure. “The market wanted near-term action, but this is more of a long-term play,” said Steven Lubka of Swan Bitcoin.

The executive order allows Treasury and Commerce officials to explore additional ways to acquire BTC without impacting taxpayers, though no official plans have been announced.

The announcement arrived just before the first White House Crypto Summit and followed Trump’s prior statements regarding a BTC reserve. However, the broader market has been dominated by concerns over inflation and trade disputes, which have diminished enthusiasm for the initiative. Analysts at JPMorgan suggested this week that cryptocurrency prices are unlikely to see major gains in the near term due to economic instability.

Bitcoin briefly touched $90,000 earlier in the week

Bitcoin briefly touched $90,000 earlier in the week but has since slipped below that level. Experts caution that if BTC fails to hold this mark, it could decline further toward $70,000.

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