White House Delivers Bitcoin and Crypto Promises, but Market Drops in Disappointment
Key Takeaways
- President Trump signed an executive order establishing a Bitcoin-exclusive strategic reserve.
- Bitcoin’s price briefly crashed following the announcement before recovering.
- The reserve will be funded with confiscated BTC, not taxpayer money.
Just a day before the first-ever White House crypto summit, President Donald Trump made good on his long-standing promise to integrate Bitcoin (BTC) into the U.S. financial system.
His executive order, signed late Wednesday, establishes a Bitcoin-exclusive strategic reserve—marking a historic shift in the government’s approach to digital assets.
Yet, the market reaction was anything but bullish.
Why Did Bitcoin’s Price Drop?
In the immediate aftermath, BTC plunged to $84,871 before rebounding above $88,000. The broader crypto market followed suit, with millions in liquidations.
Despite the significance of the order , the details left traders underwhelmed. Rather than purchasing Bitcoin outright, the government plans to stockpile BTC seized through civil forfeiture and criminal proceedings.
That clarification appeared to dash hopes of a direct government buying spree, which many had anticipated would drive prices higher.
Some analysts dismissed the crash as another “buy the rumor, sell the news” event, arguing that expectations of a Bitcoin reserve had already been priced in. However, others have raised concerns about how the government might manage its growing crypto holdings.
According to on-chain analytics firm Arkham, the U.S. government currently controls 198,109 BTC —worth roughly $17.7 billion—seized from various proceedings. Trump’s order indicates that these holdings will not be liquidated but rather retained as part of the strategic reserve.
Additionally, the Treasury and Commerce departments have been tasked with exploring “budget-neutral” strategies to acquire more Bitcoin, suggesting further accumulation could be on the horizon.
A Step Toward Legitimacy
While the market response was mixed, analysts say the order represents a watershed moment for Bitcoin.
By formally establishing a Bitcoin reserve, the U.S. government has signaled that BTC is no longer just a speculative asset but a legitimate store of value alongside gold and other traditional reserves.
Joe Burnett, Head of Market Research at Unchained, told CCN that the Bitcoin integration era has begun.
“The executive order makes clear that Bitcoin is no longer an outsider. As the seventh most valuable asset on earth, it is now positioned alongside traditional reserves, signaling a shift in how governments and institutions approach financial security, inflation protection, and global liquidity.”
Burnett believes this could open the door to new financial products, from Bitcoin-backed lending mechanisms to cross-border settlement systems that bypass traditional banking rails.
