Why is Bitcoin decreased despite Trump’s executive command, which sets a strategic bitcoin reserve

Bitcoin He fell on Friday, despite US President Donald Trump Signing an executive order to create a Bitcoin strategic reserves. This step, which was initially expected to enhance feelings in the market, instead disappointed by the hope of investors as it became clear that the government will not buy fresh Bitcoin but only depends on the confiscated assets.

There are no new bitcoin purchases

The strategic Bitcoin reserves will only be funded by the BTC seizure in cases of confiscation of criminal and civil origins, and not through government purchases. “The reserve will be obtained with Bitcoin owned by the federal government that has been confiscated as part of the procedures for confiscating criminal or civil assets,” and stated the executive order at the White House.

Investors expected the United States government to obtain Bitcoin directly, which could enhance demand and price. Instead, the executive order made it clear that no taxpayer money is used for encryption acquisitions, which inhibits the upward morale.

“The BTC’s reaction to Trump’s executive order to create the Bitcoin Strategic Strategic Reserve was only funded by the government, which raised fears that the government will not be a purchase of encryption,” said Edol Patel, CEO and co -founder of Mudrex.

Bitcoin drop to less than 88 thousand dollars

As of 10:39 am, Bitcoin decreased by 4.7 % at 87,622 dollars after touching a decrease of $ 84,717. Ethereum decreased by 6 % to $ 2,156, while the world Encryption CAP fell 4.1 % to $ 2.88 trillion. Altcoins also suffered, as Solana decreased by 5 %, XRP by 1.5 %, Cardiano decreased by 10 %, and Dogecoin lost by 7 %. “The market’s reaction to this news was a little negative as people expected the United States to spread a new capital in Bitcoin. But nowadays, the White House calls digital gold, they will not buy fresh BTC,” said Coinswitch Market.

Future Bitcoin purchases are possible, but with restrictions

Although the executive does not allow the instant bitcoin purchases, it leaves the door open for future acquisitions. The sections of the Ministry of Treasury and Trade have been assigned to develop strategies to obtain more BTC- These neutral strategies in the budget and do not impose costs on taxpayers. However, any additional purchases that exceed the seized assets require additional executive or legislative procedures.

Government bitcoin holdings will not be sold

One of the main ruling stipulates that the BTC strategic Bitcoin reserves “is not sold” and will be preserved as reserves for the United States. This means that the United States government actually takes part of Bitcoin supplies from trading, which may affect the long -term supply dynamics.

Nevertheless, merchants seemed more focused on the lack of a new request rather than a decrease in supply, which contributes to the sale.

Also read: Jim Rogers says Bitcoin is a bubble and will explode one day.

Other American digital assets stocks

It also creates a separate stock of US digital assets to hold other confiscated cryptocurrencies. Unlike Bitcoin, these other BTC assets may be managed differently, with a treasury need to determine responsible supervision strategies.

Legal review and investment may constitute future policy

Within 60 days, the Treasury must submit a report evaluating the legal effects and investment of the Bitcoin Strategic Reserve and the stock of digital assets. This review can lead to further changes in politics, and may be how the US government processes Bitcoin and other digital assets to move forward.

Also read: Peter Chef calls the Trump Reserve for encryption “pump and discharge”, and calls for Congress probe

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