Bitcoin prices decreased by 5 % after Donald Trump orders the American strategic reserve

Bitcoin prices fell more than 5 % after US President Donald Trump signed an executive order to create a strategic bitcoin reserve. The matter was signed on Thursday, a day before Trump was appointed to meet senior executives of the encrypted currency in the White House, Reuters reported.

On the social media platform X, Crypto Crypto CZAR, David Sacks, said on the X social media platform that the reserve will be built using Bitcoin owned by the United States government. These holdings come from the encrypted currency that was seized in cases of confiscation of criminal or civil assets. However, no details were provided on how to make a reserve or its potential benefits have not been provided for taxpayers.

Bitcoin prices decreased by 5.2 % to 84,838.57 dollars after the announcement. Market monitors believe that the step has created uncertainty, which leads to sudden low prices. Despite the decrease, some encryption supporters argue that the reserve can help in stabilizing the market and providing long -term benefits.

The White House encryption summit on Friday is expected to be a Trump platform for the official announcement of the reserve, which will include five digital assets. Earlier this week, Trump named the five currencies that are expected to be part of Reservebitcoin, Eter, XRP, Solana and Cardano.

Sacks said that Bitcoin stored in the reserve will not be sold and will be kept instead as a long -term store for value. Bitcoin strategically compared to Fort Knox, the American gold storage facility, and referred to Bitcoin as “digital gold”. However, the lack of clarity on how the reserve works and how it can be managed has raised concerns between investors and analysts.

Trump’s support for the coded currency industry was welcomed by some in this sector, especially after encryption companies spent millions in his support and other Republicans in the upcoming elections. However, some conservatives and those familiar with the encryption industry have asked whether this step only benefits from a rich group instead of the wider economy.

Bitcoin strategic reserve supporters argue that taxpayers can benefit from the potential rise in encrypted currency prices. Trump’s executive order in Treasury and Trade Administration has been ordering a plan to gain more bitcoin without increasing taxpayers. The administration did not share details on how to achieve this.

Sacks estimated that the United States government currently has about 200,000 Bitcoin. He claimed that early sales of the cryptocurrency had already cost taxpayers $ 17 billion, although it is not clear how these numbers reached.

The move also raised concerns about conflicting interests. The Trump family has launched the coins of the cryptocurrency, and it is reported that the president has a stake in World Liberty Financial, a coding platform. While Trump aides said he no longer managed his commercial interests, external ethics lawyers are reviewing his financial dealings, according to the report.