Bitcoin extended losses Thursday, falling 5.7% in less than an hour as investors reacted to President Donald Trump’s executive order establishing a Strategic Bitcoin Reserve.
The decline came after Bitcoin surged above $92,000 earlier in the week on speculation surrounding the initiative.
But the rally has faded as traders take profits and reassess the market impact of the government’s new digital asset policy. Bitcoin has since rebounded slightly to $87,200, CoinGecko data shows.
Ethereum lost 6.1% to $2,100, while Solana and Dogecoin declined 6.8% and 5.8%, respectively. Binance’s BNB dropped 3.6% to $576, while Cardano fell 13.8% to $0.81, leading losses among major tokens.
The executive order, signed Thursday, authorizes the creation of a Bitcoin reserve using assets seized in criminal and civil forfeiture cases.
President Trump Signs Executive Order to Establish Bitcoin Reserve, Crypto Stockpile
The Strategic Bitcoin Reserve became reality on Thursday, as President Donald Trump signed an Executive Order authorizing the creation of the digital asset stockpile. White House AI and Crypto Czar David Sacks announced the news on X, claiming the initiative would not "cost taxpayers a dime.” “The Reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings,” Sacks wrote. In a bid to curry favor with the Bi...
White House AI and Crypto Czar David Sacks said the reserve would act as a “digital Fort Knox” and would not require additional taxpayer funding.
The government holds an estimated 200,000 BTC, worth about $17.7 billion, which will form the core of the stockpile, he said.
The move adds another layer of uncertainty to an already volatile market.
While some investors see it as a long-term bullish signal, others remain wary of how the government plans to manage its holdings.
The broader crypto market faced pressure amid a pullback in risk assets, even as global equity futures signaled cautious optimism.
President Trump Signs Executive Order to Establish Bitcoin Reserve, Crypto Stockpile
The Strategic Bitcoin Reserve became reality on Thursday, as President Donald Trump signed an Executive Order authorizing the creation of the digital asset stockpile. White House AI and Crypto Czar David Sacks announced the news on X, claiming the initiative would not "cost taxpayers a dime.” “The Reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings,” Sacks wrote. In a bid to curry favor with the Bi...
U.S. equity futures edged higher, with Dow Jones Industrial Average futures up 0.1%, S&P 500 futures rising 0.22%, and Nasdaq-100 futures climbing 0.3%.
It also follows President Trump’s temporary exemption of certain automakers from tariffs, easing trade tensions.
Investors are also looking ahead to the European Central Bank’s upcoming meeting, where a rate cut is widely expected amid rising euro area yields and changes to Germany’s fiscal policy.
Bitcoin remains up nearly 30% year-to-date, bolstered by inflows into U.S.-listed spot Bitcoin exchange-traded funds.
Still, market participants appear to be awaiting further regulatory developments and details on how the government intends to handle its Bitcoin reserves going forward.
