Fri Mar 07 05:26:23 UTC 2025: ## Trump’s Crypto Plan Disappoints, Bitcoin Plunges 6%

**NEW YORK** – President Donald Trump’s highly anticipated executive order establishing a national Bitcoin reserve has sent shockwaves through the cryptocurrency market, resulting in a significant drop in Bitcoin’s value. The order, which fell short of investor expectations by not including plans for government purchases of Bitcoin, saw the cryptocurrency plummet as much as 6 percent on Thursday.

The order, announced by Trump’s crypto advisor David Sacks, focuses on consolidating existing government-held Bitcoin – estimated at 200,000 coins seized during criminal and civil forfeitures – into a “Strategic Bitcoin Reserve” and a separate “Digital Asset Stockpile” for other cryptocurrencies. Sacks emphasized that the initiative would be budget-neutral, funded solely by assets already in government possession.

However, this lack of active government investment proved disappointing to many in the crypto community. Several analysts expressed concern, highlighting that the plan’s reliance on revenue-neutral acquisitions is unrealistic given the federal government’s operational constraints. The announcement was described as “underwhelming” and a potential catalyst for a bear market.

Bitcoin, which had briefly reached a low of $84,900 following the news, recovered slightly, trading around $87,700 by 05:00 GMT. The executive order also calls for a full accounting of all federal government digital asset holdings. While Sacks touted the reserve as a “digital Fort Knox” designed to maximize the value of existing holdings and prevent further losses from premature sales, the market reacted negatively to the absence of planned government purchases. The order includes plans for a separate stockpile of other digital assets like Ether, XRP, Solana, and Cardano, also acquired through forfeitures.

The news comes after a period of significant growth in Bitcoin’s value following Trump’s election, reaching a peak of $109,071 in January. The president’s pro-crypto stance has faced criticism amid reports of his family’s substantial cryptocurrency holdings, including investments in a Trump-themed meme coin. Critics continue to express concerns about the inherent volatility and speculative nature of cryptocurrencies.

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