Bitcoin Market Cools Off as Traders Digest Trump’s Crypto Reserve Plan
The cryptocurrency market remained steady on Friday after declining on Thursday, following President Donald Trump’s signing of an executive order to establish a Bitcoin reserve and a separate digital asset stockpile for the U.S.
At 04:58 a.m. ET, Bitcoin traded at $88,949.16, according to Coin Metrics.
Bitcoin briefly plunged to $84,688.13 following the announcement, while other digital assets, including Ether, XRP, and Solana’s SOL, also posted losses before stabilizing.
White House crypto policy lead David Sacks clarified that the Bitcoin reserve will comprise only confiscated BTC already in the government’s possession, ensuring no taxpayer burden. According to Arkham data, the U.S. holds around 198,000 bitcoins, valued at roughly $17 billion.
The separate digital asset stockpile will include other cryptocurrencies seized through law enforcement actions, with no plans for additional acquisitions. Reports indicate that the U.S. government holds about 56 ether tokens worth $119 million but does not own XRP, Solana, or Cardano assets.
Traders expressed disappointment
Traders expressed disappointment over the lack of new Bitcoin purchases, given expectations of immediate government buying. “Investors were hoping for more direct market intervention,” said Steven Lubka of Swan BTC.
While the executive order allows for further exploration of Bitcoin accumulation without taxpayer funding, no concrete plans have been set.
The move comes just before the first White House Crypto Summit, but market reaction has been muted due to ongoing economic uncertainty. Analysts at JPMorgan noted earlier in the week that they do not foresee a major crypto rally given current macroeconomic conditions.
Bitcoin previously tested the $90,000 threshold but remains below it. Analysts warn that if it fails to sustain this level, the price could decline further toward $70,000.
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