- Bitcoin crashed 5% in the past day, dropping below $90,000 once again
- Trump signed an Executive Order for the creation of a Strategic Bitcoin Reserve
- The US government will only hold the BTC they already have and not buy more
Bitcoin surged to a high of $95,000 after United States President Donald Trump announced the creation of the Strategic Bitcoin Reserve. This sparked speculation that the government would begin purchasing Bitcoin as part of its strategy.
However, CoinMarketCap data shows in the past 24 hours, BTC fell 5% to $87,174.12. This happened as investors learned there were no new Bitcoin purchases—only the holding of already-seized coins.
Reality Check
A few days back, Trump stated that a US Crypto Reserve will be created with Bitcoin and Ether as key parts of the reserve, with XRP, Solana (SOL) and Cardano (ADA) also to be added. But, the excitement for this reserve was short-lived.
Trump’s Crypto Czar, David Sacks, clarified on social media platform X that the Strategic Bitcoin Reserve would be funded only with Bitcoin already owned by the US government from criminal and civil asset forfeitures.
Simply put, there was no taxpayer-funded acquisition—it’s just a strategic decision to hold and not sell previously seized BTC.
Related: New Hampshire Eyes Bitcoin Investment for State Funds; Bill Advances, Market Watchers React
Digital Fort Knox or Just Hype Management?
The idea of the Bitcoin Reserve is being compared to a digital Fort Knox. The government safeguards its holdings rather than selling them at a loss, like in previous years.
Sacks emphasized that “premature sales of Bitcoin have already cost U.S. taxpayers over $17 billion in lost value.” The new policy in place change could prevent further losses, but then it doesn’t bring in fresh capital to the market either.
In addition, the Executive Order created a Digital Asset Stockpile—a collection of forfeited cryptocurrencies like XRP, SOL, and ADA. However, similar to the Bitcoin Reserve, the Stockpile will only hold previously seized assets, with no new acquisitions planned beyond forfeitures.
“Buy the Rumor, Sell the News” BTC Price Correction
The sudden price drop from $92K to $87K reflects a classic case of “buy the rumor, sell the news.”
Investors who bought into the idea of government Bitcoin accumulation quickly sold off their positions when it became clear that no additional purchases would be made.
Related: Bitcoin Supply Nears Limit: Price Analysis & US Reserve Effect on Market
Bitcoin Price Chart Hints at Potential 20% Move
But it’s not that all hopes lost on a Bitcoin price surge from the latest announcement.Analyst Ali Martinez pointed to a technical chart suggesting Bitcoin is set for a 20% move, forming a symmetrical triangle pattern. The pattern’s height, calculated from the highest point near $100,000 to the lowest around $72,500, is approximately $27,500. If Bitcoin breaks upward, the target could reach $117,500, while a bearish breakdown could push prices down to $62,500.
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