- Cryptocurrency values declined following Trump’s announcement regarding a strategic bitcoin reserve.
- The reserve will consist of bitcoin currently owned by the US government rather than acquiring new assets.
- Per Thursday’s executive order, other cryptocurrencies will be allocated to a different fund.
On Monday, cryptocurrency prices saw further declines due to dissatisfaction with the proposed strategic bitcoin reserve.
Bitcoin experienced a drop of approximately 1.5% at 9:00 ET, settling at just above $83,000, marking a loss of over 8% since Thursday.
Ether fell around 5.5% during the same timeframe, while XRP decreased by 2.5% and has lost over 12% in the last five days.
Alternative cryptocurrencies will be set aside in a separate fund instead of being included with the bitcoin reserve. Some analysts have criticized the decision to place lesser-known coins in this separate fund.
Earlier this month, President Donald Trump stated that the reserve would position the US as the “Crypto Capital of the World.” However, the executive order signed on Thursday clarified that the reserve will only contain bitcoin already possessed by the government, primarily obtained through asset forfeiture in criminal and civil cases.
Many in the cryptocurrency community expected additional bitcoin purchases to augment the fund, which now appears unlikely in the near future, although there is still potential for it.
“The Secretary of the Treasury and the Secretary of Commerce shall devise strategies to acquire more Government BTC [bitcoin], provided that such strategies are budget neutral and do not impose additional costs on United States taxpayers,” the order revealed.
David Sacks, the crypto representative from the Trump administration, expressed on X that leveraging the government’s current bitcoin holdings would mean that the reserve “will not cost taxpayers a dime.”
“The government will not procure extra assets for the reserve beyond those acquired through forfeiture actions.”
Sacks has also initiated an audit of the government’s crypto reserves, estimated to be around 200,000 bitcoin alone, which BBC News reported to be valued at approximately $16.5 billion.
