Let us know about free updates
Simply sign up for Cryptocurrencies Myft Digest and it will be delivered directly to your inbox.
Cryptocurrency prices fell on Friday as an executive order from President Donald Trump to establish a strategic US Bitcoin reserve.
Bitcoin prices fell 6.6% before slightly rebounding to trade around $89,000 after an order signed late Thursday.
After Trump announced his hopes in a social media post on Sunday, traders wanted the US government to start buying Bitcoin and other cryptocurrencies. His comments that the spare could include Ethereum and the lesser-known cryptocurrencies Cardano, Solana and XRP led to a surge in prices.
Reserve assets are usually important resources that can be used in times of crisis. While many countries have gold reservoirs in the United States, there are emergency oil reserves to protect against supply shocks.
The White House said it would also establish a stockpile of national digital assets for tokens other than Bitcoin without specifying either. The government said it would “not acquire additional assets” for stockpiling beyond what was obtained through the investigation, and could enact “potential sales.”
Ethereum, the second largest crypto token, dropped 4.5% to $2,194. Cardano blockchain token Ada fell 7.8% to $0.87, Solana fell 5.6% to $143, while XRP fell 3.4% to $2.52.
Bitcoin Reserve supporters argue that the US should build a reserve that could serve as a dollar replacement. Bitcoin is likened to “digital gold” as an asset that cannot be devised by central banks or government policies.
The Trump administration has also pledged to consider purchasing more Bitcoin, as long as its strategy is “budget neutral and does not impose incremental costs on US taxpayers.”
Recommended
“The US does not sell Bitcoin deposited in the reserve. It is held as a valuable store. The reserve is like the digital Fort Knox, a cryptocurrency often referred to as “digital gold,” confirms David Sachs, a billionaire investor on social media site X and a White House crypto emperor.
Sacks estimated that the US had an estimated 200,000 Bitcoins and roughly $17.8 billion worth of Bitcoins, which promised a “full accounting” for government digital assets holdings.
“We’re committed to providing a range of digital assets,” said Andrew O’Neill, managing director of digital assets at S&P Global Ratings.
The Washington crypto embrace comes as the White House hosts investors and heads of large corporations, including Strategy Michael Saylor at Friday’s summit.
