Bitcoin Holds Ground Despite Market Uncertainty Over U.S. Reserve Plan
The cryptocurrency market showed little change on Friday after experiencing a dip on Thursday, following President Donald Trump’s signing of an executive order to create a strategic Bitcoin reserve and a digital asset stockpile for the United States.
Bitcoin traded at $88,949.16 as of 04:58 a.m. ET, according to Coin Metrics.
Shortly after the announcement, Bitcoin’s price dropped to $84,688.13, with Ether, XRP, and Solana’s SOL also experiencing declines before stabilizing.
David Sacks, the White House’s top crypto policy official, explained that the Bitcoin reserve will only include BTC previously seized by the government, ensuring no additional taxpayer expenditure. Arkham data estimates that the U.S. government holds approximately 198,000 bitcoins valued at $17 billion.
The digital asset stockpile will include other confiscated cryptocurrencies, with no plans for additional acquisitions. The U.S. government currently holds around 56 ether tokens worth nearly $119 million but has no known holdings of XRP, Solana, or Cardano.
Market expectations for government-driven Bitcoin purchases were met with disappointment, leading to initial sell-offs. “People were anticipating direct buy pressure, but that didn’t materialize,” commented Steven Lubka of Swan Bitcoin.
Although the executive order allows for budget-neutral strategies to accumulate more Bitcoin, no specific initiatives have been detailed yet.
The announcement, which preceded the White House Crypto Summit, was overshadowed by broader economic concerns, including inflation and trade disputes. JPMorgan analysts predict that these factors will likely limit short-term crypto gains.
Bitcoin briefly tested $90,000 earlier in the week but has struggled to stay above that level. Analysts warn that failing to hold this position could trigger a further decline toward $70,000.
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