Bitcoin Plunges as Strategic Reserve Executive Order Disappoints Investors
Bitcoin tumbled over 5% to $84,838 after President Trump signed an executive order establishing a Strategic Bitcoin Reserve on Thursday. The cryptocurrency dropped from recent highs above $90,000 as traders sold on news that fell short of market expectations.
Trump’s order creates a reserve using approximately 200,000 bitcoins already owned by the federal government through criminal and civil asset forfeitures. The market reacted negatively to the lack of plans for additional government purchases.
“This means it will not cost taxpayers a dime,” explained White House AI and Crypto Czar David Sacks, who emphasized the reserve would function as “a digital Fort Knox”. The order prohibits selling any Bitcoin from the reserve.
The total cryptocurrency market cap decreased to $2.88 trillion, representing a 4% drop in the past 24 hours. Ethereum also suffered, falling 6.06% to $2,176.70, while trading volumes across the market declined.
Market analysts attribute the selloff to a classic “buy the rumor, sell the news” reaction. Investors had anticipated more aggressive government buying that would boost demand. Instead, the order merely formalizes holding existing assets.
“While this marks an initial step, the details fell far short of what many had anticipated,” noted 10X Research. “The actual Bitcoin allocation could be 50% lower than the headlines suggest”.
The executive order also establishes a U.S. Digital Asset Stockpile for other cryptocurrencies. Trump previously suggested this could include XRP, Solana, Ethereum and Cardano.
Crypto Market Reacts to White House Crypto Summit
The price drop comes just hours before the White House hosts its first-ever Crypto Summit today, where Trump will meet with industry leaders and the Presidential Working Group on Digital Assets.
Despite the immediate negative reaction, the order represents a historic shift in U.S. financial policy by officially recognizing Bitcoin as a strategic reserve asset.
Yesterday’s rally saw Bitcoin rebound from support at $86,339 to test resistance at $90,935. Shivam Thakral, CEO of BuyUcoin, attributed the previous day’s surge to optimism following Trump’s tariff delay. The cryptocurrency rallied more than 5% in a single day before the overnight reversal.
Ethereum also retreated, trading at $2,169 after jumping 8.6% to $2,251 yesterday. ETF flows remain volatile with $14.58 million inflows on March 4 followed by $63 million outflows on March 5. This fluctuation creates continued uncertainty around Ethereum’s short-term trajectory.
XRP emerged as a standout performer, maintaining much of its gains at $2.49 despite the broader market pullback. Daily active addresses skyrocketed by 620% from 74,589 to 462,650. This resilience suggests continued investor confidence in XRP‘s potential.
Solana dropped to $142.54 after climbing to $149 yesterday. The decline relates to broader market sentiment and regulatory concerns. Litecoin showed relative stability at $101.53 following yesterday’s 5.72% gain.
Technical analysis shows Bitcoin now testing support at $88,500, crucial for maintaining its current structure. A drop below could see BTC retest $85,000. Ethereum must maintain support above $2,150 for recovery prospects.
Market sentiment remains mixed as the Fear & Greed Index moved from “Fear” to “Neutral” territory before the overnight reversal. Traders now closely watch the White House Crypto Summit outcomes and Federal Reserve Chair Jerome Powell’s speech scheduled for today.
Live Market IntelligenceCrypto — Live Market Board
Rio Times · Live Market Intelligence
Crypto — Live Market Board
-0.26%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| BTC | 63,384 | -0.26% | -47.24% | 63,552 | 64,346 | 63,305 | 22,774,743,040 |
| ETH | 1,886 | +0.26% | -58.90% | 1,881 | 1,920 | 1,879 | 7,916,475,392 |
| SOL | 75.89 | -0.40% | -60.44% | 76.20 | 76.99 | 75.39 | 1,473,821,056 |
| XRP | 1.01 | -1.15% | -69.07% | 1.02 | 1.02 | 1.01 | 1,144,044,416 |
| BNB | 609.60 | -1.12% | -26.81% | 616.50 | 619.30 | 609.23 | 1,266,706,432 |
| ADA | 0.18 | -1.98% | -78.22% | 0.19 | 0.19 | 0.18 | 238,085,632 |
| DOGE | 0.07 | -1.56% | -70.00% | 0.07 | 0.07 | 0.07 | 553,256,192 |
| AVAX | 6.38 | +1.04% | -74.11% | 6.32 | 6.42 | 6.21 | 248,470,560 |
| LINK | 8.77 | -0.06% | -62.73% | 8.77 | 8.87 | 8.68 | 317,054,880 |
| DOT | 0.78 | -0.75% | -81.11% | 0.79 | 0.80 | 0.78 | 43,490,492 |
| LTC | 45.08 | -0.85% | -65.45% | 45.47 | 45.59 | 44.98 | 143,727,712 |
| BCH | 213.85 | +0.10% | -65.44% | 213.64 | 215.69 | 212.54 | 137,956,688 |
| TRX | 0.34 | +0.28% | -4.73% | 0.33 | 0.34 | 0.33 | 436,576,064 |
| XLM | 0.16 | -1.33% | -64.46% | 0.16 | 0.16 | 0.16 | 89,559,864 |
| HBAR | 0.07 | -0.53% | -74.67% | 0.07 | 0.07 | 0.07 | 22,546,186 |
| NEAR | 1.65 | +2.42% | -40.55% | 1.62 | 1.68 | 1.61 | 187,591,264 |
| ATOM | 1.40 | -2.36% | -70.15% | 1.44 | 1.44 | 1.40 | 18,626,964 |
| AAVE | 89.06 | +0.93% | -72.33% | 88.24 | 90.20 | 88.19 | 129,099,704 |
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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