After Donald Trump's announcement of creating a strategic crypto reserve, the value of Bitcoin fell significantly. The decline followed clarifying information about purchase policy.
Bitcoin's Rise and Fall
Following Trump's announcement of the Strategic Bitcoin Reserve, Bitcoin's price soared to $95,000. However, it fell by 5% to $87,174.12 over the next 24 hours as it became clear no new BTC purchases were planned.
What Does the Crypto Reserve Include?
Trump initially stated that the US Crypto Reserve would include Bitcoin, Ether, and eventually incorporate XRP, Solana, and Cardano. However, it was revealed that the reserve would consist solely of Bitcoin already owned by the US government.
Market Reaction and Comments
Although the announcement initially spurred excitement, market volatility soon followed. Trump's Crypto Czar David Sacks clarified that the reserve would be funded only with seized cryptocurrencies, and no new purchases are planned.
The announcement of forming a crypto reserve led to a short-term spike in Bitcoin's price, but the subsequent correction highlighted investor dissatisfaction. Government plans do not include actively acquiring new coins for the reserve.
