Bitcoin dropped 5%, falling from $90,400 to $84,979, after Donald Trump’s plan for a Strategic Bitcoin Reserve disappointed investors. The reserve will only use Bitcoin seized from criminal cases, with no new Bitcoin purchases planned.
Market enthusiasts had expected the government to purchase more Bitcoin, but the plan, revealed by Trump’s crypto tsar David Sacks, disappointed investors.
Sacks clarified on X that the reserve would only use Bitcoin already held by the US from criminal cases, with no new acquisitions planned—at least not in the immediate future.
The news had a ripple effect across the crypto market, dragging down major altcoins. Ether (ETH) dropped 6.23%, XRP fell 7%, Solana (SOL) decreased by 5.01%, and Cardano (ADA) slumped by 9%.
[cryptotimes]