Cryptocurrency prices drop after Trump’s executive order on Bitcoin reserve

Cryptocurrency prices dropped Thursday night after President Donald Trump signed an executive order creating a strategic bitcoin reserve for the United States and a “digital asset stockpile.” Bitcoin’s price fell 3% to $87,586.86, dipping as low as $84,688.13 shortly after the news. Other cryptocurrencies, which had risen earlier in the week, also saw losses. Ether dropped 2% to $2,184.08, while XRP and Solana’s SOL token fell 1% and 3%, respectively. Cardano’s ADA token dropped 13%.

David Sacks, a White House crypto and AI official, explained that the bitcoin reserve would include bitcoins seized by the U.S. government through law enforcement actions. The U.S. currently holds over 198,000 bitcoins worth about $17 billion. The digital asset stockpile will also consist of other digital assets seized in criminal or civil cases. However, the government will not purchase additional assets for this stockpile.

Investors were initially disappointed as the executive order indicated no immediate plans to buy more bitcoin. This news came just before the first White House Crypto Summit and amid economic concerns about inflation and tariffs, which have affected the broader market. Despite a brief rise above $90,000, Bitcoin’s price remains under pressure, with analysts cautioning it may fall toward $70,000.