Brief Take
- Certain aspects of President Trump’s new crypto policy disappoint the market, including the refusal to purchase more altcoins or involve taxpayer’s money when acquiring crypto.
- Bitcoin dips hours after the executive order becomes public.
US President Donald Trump recently signed an executive order (EO) to set up a strategic Bitcoin reserve and stockpile of major altcoins. However, Bitcoin and the crypto market sank hours after as the market felt some parts of the policy were rather disappointing.
Trump’s order on US crypto reserve
Forfeited Bitcoin from criminal and civil proceedings will make up the reserve and the US will not sell any cryptocurrencies deposited into the reserve, except on certain occasions.
The order authorized the Treasury to only develop “budget-neutral strategies” for purchasing additional BTC, without any incremental cost to taxpayers.
The same executive order establishes another stockpile of altcoins like ETH and SOL. “The government will not acquire additional assets for the Stockpile beyond those obtained through forfeiture proceedings,” the order read.
Market seems unsatisfied as BTC sinks following Trump’s executive orders
Bitcoin sank about 4% to trade around $86,000 at 8:10 pm, New York Time on Thursday, following news of Trump’s order. Similarly, four other assets that Trump planned to include in the strategic reserve – XRP, ETH, SOL, and ADA – dipped by at least 3.5% over the same period.
The drop in crypto prices tells of how the crypto market feels about Trump’s policy on the much-awaited Strategic Bitcoin Reserve, with some calling it “a bad deal.”
The market spoke.
— Spawny 😈 | spawny.eth (@hellspawncrypto) March 7, 2025
This is a bad joke and a disgrace.
What we've been promised and this is clearly not the case.
We've already knew the seized Bitcoin are of US Government.
You guys literally did nothing just to change who holds the seized Bitcoin.
Such a bad deal.
Much of the market’s disappointments are linked to the fact that the government would not create any budget whatsoever to purchase Bitcoin and other digital assets.
“So the government can’t buy but only steal crypto…” voiced another X user.
Thirty days from now, agencies in possession of seized Bitcoin and crypto will begin to transfer the assets to the Treasury, Blockfinix reported.
According to data from Arkham Intelligence, the US government currently has about $17.7 billion worth of cryptocurrencies, including Bitcoin, Ether, and Binance Coin, among others.
