Bitcoin took a hard hit after President Trump signed an order to set up a government Bitcoin reserve. Many thought this would boost the market, but instead, Bitcoin’s price dropped. The executive order, signed on March 6, 2025, calls for a reserve funded by money from seized assets in criminal and civil cases. The plan shows that the United States wants to lead in the use of Bitcoin, without spending taxpayer dollars.
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The order did not include any plans for the government to buy Bitcoin directly. Investors had expected the government to jump in and purchase large amounts of the cryptocurrency. Instead, the reserve will be created with funds from assets taken in court cases. David Sacks, a top White House official for AI and crypto matters, said the move shows that Bitcoin is now a strategic asset for the country. He explained that the reserve is meant to help keep financial stability and protect against economic troubles.
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Despite these claims, many market watchers believe that the government’s lack of a clear buying plan hurt investor confidence. Bitcoin was already facing strong resistance at key price points. This news made many investors sell their Bitcoin, causing the price to drop even further. Some experts worry about the long-term plans for digital assets by the government, while others feel that the market’s reaction was too extreme.
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There is still a lot of uncertainty about how the reserve will be managed. No one is sure if the government plans to hold the Bitcoin, sell it later, or use it in other ways. This lack of clear details has left investors uneasy about the future of Bitcoin and the wider cryptocurrency market. Traders are now watching closely to see how the reserve will work and if any new policy changes might finally push the market upward.
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As the government continues to refine its strategy, the overall impact on the cryptocurrency world remains unclear. The move may eventually lead to deeper institutional involvement, or it might stay as a symbolic gesture. For now, Bitcoin holders are left to wonder if this strategic reserve will ever bring the promised market boost, or if it will remain a plan that disappoints more than it delivers.
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