Why Bitcoin is falling despite Trump’s executive order establishing a Strategic Bitcoin Reserve
Bitcoin fell on Friday despite US President Donald Trump signing an executive order to establish a Strategic Bitcoin Reserve. The move, which was initially expected to boost market sentiment, instead disappointed investors as it became clear that the government would not be buying fresh Bitcoin but would rely solely on confiscated assets.
No new Bitcoin purchases
<div data-placement=«Mid Article Thumbnails» data-target_type=«mix» data-mode=«thumbnails-mid» style=«min-height:400px; margin-bottom:12px;» class=«wdt-taboola» id=«taboola-mid-article-thumbnails-118778619»>The Strategic Bitcoin Reserve will be funded only through BTC seized in criminal and civil asset forfeiture cases, rather than through government purchases. «The reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings,» the White House Executive Order stated.
Investors had anticipated that the US government might directly acquire Bitcoin, potentially boosting demand and price. Instead, the executive order clarified that no taxpayer money will be used for crypto acquisitions, dampening bullish sentiment.
«BTC reacted to Trump's executive order to create a strategic Bitcoin reserve funded solely from the assets seized by the government, raising concerns that the government wouldn't be a buyer of crypto,» said Edul Patel, CEO and co-founder of Mudrex.
Did you Know?
The world of
Read on economictimes.indiatimes.com