Bitcoin plunged as much as 6% on Thursday after United States President Donald Trump’s executive order to establish a Strategic Bitcoin Reserve fell short of market expectations.
The cryptocurrency tumbled to $84,900 following the announcement before recovering slightly to $87,700 by 5:00 GMT. The decline came as investors were left disappointed by the absence of detailed government purchase plans in the directive.
The order, unveiled by Trump’s crypto adviser David Sacks, proposed capitalizing the reserve using Bitcoin seized in criminal or civil cases — a move that would come at no cost to taxpayers.
“This means it will not cost taxpayers a dime,” Sacks stated on X, adding that the federal government’s estimated 200,000 BTC holdings would undergo a full audit.
The order also instructed the Treasury and Commerce Departments to devise budget-neutral strategies for acquiring additional Bitcoin, provided no public funds were used.
Bitcoin had surged following Trump’s election victory in November, reaching a record high of $109,071 in mid-January. However, the president’s pro-crypto stance has faced scrutiny amid reports that his family holds billions in digital assets, including a Trump-themed meme coin launched earlier this year.
Critics of cryptocurrencies have long argued that they lack intrinsic value, comparing their meteoric rise to speculative bubbles or Ponzi schemes.
