Trump reverses stance on crypto: Bitcoin drops 5.7%
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On Thursday, March 6th, U.S. President Donald Trump signed an executive order to create a strategic government reserve of digital currency. However, David Sacks – the so-called cryptocurrency and AI Czar of the Trump administration – stated that only bitcoins seized in criminal or civil proceedings will be included. This decision comes just one day before a meeting at the White House with cryptocurrency industry’s companies.
The shift concerns the cryptocurrency sector
Earlier this week, Trump announced the intention to include five cryptocurrencies in the new strategic reserve: Bitcoin, Ether, XRP, Solana, and Cardano, which caused the market value of each to rise. Therefore, summit participants were simply expecting the agreement’s official announcement. In fact, Charles Edwards, founder of Bitcoin, expressed dissatisfaction with the outcome of the cryptocurrency executive order, which in the meantime caused the price of the digital currency to drop by 5.7%.
David Sacks' estimates
The cryptocurrency industry has invested millions of dollars in Donald Trump’s election campaign, so the executive order was met with significant concern. According to Sacks' estimates, the U.S. government owns approximately 200,000 bitcoins, which are currently valued at $17.5 billion, but there are no plans to sell those contained in the reserve, which will be used exclusively as a kind of digital Fort Knox.
It is still unclear how this new Reserve will function, although Sacks has already stated that the federal government is currently developing a plan to maximize the value of the holdings within the reserve.
The shift concerns the cryptocurrency sector
Earlier this week, Trump announced the intention to include five cryptocurrencies in the new strategic reserve: Bitcoin, Ether, XRP, Solana, and Cardano, which caused the market value of each to rise. Therefore, summit participants were simply expecting the agreement’s official announcement. In fact, Charles Edwards, founder of Bitcoin, expressed dissatisfaction with the outcome of the cryptocurrency executive order, which in the meantime caused the price of the digital currency to drop by 5.7%.
David Sacks' estimates
The cryptocurrency industry has invested millions of dollars in Donald Trump’s election campaign, so the executive order was met with significant concern. According to Sacks' estimates, the U.S. government owns approximately 200,000 bitcoins, which are currently valued at $17.5 billion, but there are no plans to sell those contained in the reserve, which will be used exclusively as a kind of digital Fort Knox.
It is still unclear how this new Reserve will function, although Sacks has already stated that the federal government is currently developing a plan to maximize the value of the holdings within the reserve.