Hassan Maishera
TL;DR
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Bitcoin is trading below $88k after losing 5% of its value in the last few hours.
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The poor performance comes after President Trump signed an executive order to set up a Strategic Bitcoin Reserve with forfeited assets.
Bitcoin Dips on Trump’s Strategic Bitcoin Reserve Order
The cryptocurrency market turned bearish on Thursday as Bitcoin and other major cryptocurrencies underperformed. Bitcoin lost over 5% of its value in the last 24 hours and has dropped below the $88k level.
At press time, Bitcoin’s price stands at $87,986 per coin but could surge higher ahead of today’s Crypto Summit in the United States. The bearish performance comes despite President Trump signing an executive order to set up a Strategic Bitcoin Reserve with forfeited assets.
Just a few minutes ago, President Trump signed an Executive Order to establish a Strategic Bitcoin Reserve.
— David Sacks (@davidsacks47) March 7, 2025
The Reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings. This means it…
Peter Chung, head of research at Presto Research, told The Block that,
"BTC is not showing parabolic reaction which leads me to think that there is a certain amount of 'buy the rumor sell the news' type of activity going on. It's only an hour into the news so the market may be volatile in the next hours as it digests colliding forces."
According to the White House AI and Crypto Czar David Sacks, the president signed an executive order on Thursday to create a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile.
"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 added.
He stated that the U.S. will not sell any Bitcoin deposited into the reserve. Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick are also authorized to develop "budget-neutral strategies" for acquiring additional bitcoin.
Altcoins also underperformed in the last 24 hours, with Ether losing 6% of its value to drop below $2,200. Cardano (ADA) is down 7% while Dogecoin crashed by 6%. The total cryptocurrency market cap has dropped to $2.88 trillion, down 4% as BTC and other major altcoins falter.
