On March 7, 2025, the President of the United States, Donald Trump, signed a decree on the creation of a strategic reserve of Bitcoin, which caused significant fluctuations in the exchange rate of this cryptocurrency. Immediately after the announcement, the price of Bitcoin dropped from $90,978 to $85,080, but then partially recovered to $89,075.
According to the decree, the US will cease the sale of confiscated bitcoins and develop a strategy for their accumulation without additional expenses for taxpayers. Other cryptocurrencies, such as Ethereum, Solana, XRP, and Cardano, will be included in a separate fund, but the state does not plan to buy more of them.
The market reacted to this news by lowering the price of Bitcoin by 3%, from $87,600 to $84,700. Similar decreases were observed in other cryptocurrencies: Ethereum dropped by 2%, XRP by 1%, Solana by 3%, and Cardano by 13%.
The reason for this market reaction was investors' disappointment: instead of the expected new government purchases of bitcoins, the reserve will be replenished with assets already owned by the government obtained through confiscations. This means a lack of additional demand from the government, which led to the initial price decline.
However, despite the initial drop, the market quickly stabilized. Thus, although Trump's decree caused short-term volatility in the bitcoin market, further developments will depend on specific actions by the administration in regulating and supporting the cryptocurrency sector.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
On March 7, 2025, the President of the United States, Donald Trump, signed a decree on the creation of a strategic reserve of Bitcoin, which caused significant fluctuations in the exchange rate of this cryptocurrency. Immediately after the announcement, the price of Bitcoin dropped from $90,978 to $85,080, but then partially recovered to $89,075.
According to the decree, the US will cease the sale of confiscated bitcoins and develop a strategy for their accumulation without additional expenses for taxpayers. Other cryptocurrencies, such as Ethereum, Solana, XRP, and Cardano, will be included in a separate fund, but the state does not plan to buy more of them.
The market reacted to this news by lowering the price of Bitcoin by 3%, from $87,600 to $84,700. Similar decreases were observed in other cryptocurrencies: Ethereum dropped by 2%, XRP by 1%, Solana by 3%, and Cardano by 13%.
The reason for this market reaction was investors' disappointment: instead of the expected new government purchases of bitcoins, the reserve will be replenished with assets already owned by the government obtained through confiscations. This means a lack of additional demand from the government, which led to the initial price decline.
However, despite the initial drop, the market quickly stabilized.
Thus, although Trump's decree caused short-term volatility in the bitcoin market, further developments will depend on specific actions by the administration in regulating and supporting the cryptocurrency sector.