President Donald Trump signing the executive order for US strategic reserve for Bitcoin has turned out to be a ‘sell the news’ event. Bitcoin price crashed down all the way from $92,000 to hitting a low under $85,000, dropping more than 7% in the last 24 hours. Altcoins have also come crashing down 5-7% as the broader crypto community doesn’t seem to be much happy regarding the reserve news. Why Is Bitcoin Price Crashing Suddenly? After hitting the bottom of $83,000 earlier this week, Bitcoin bounced back all the way to $92,000 ahead of the scheduled White House Crypto Summit on Friday, March 7. Bitcoin prices drop significantly after President Trump signs an executive order to establish a strategic Bitcoin reserve . The order provides no clarity on how the reserve will be funded beyond the Bitcoin already held by the U.S. government. Essentially, it’s merely a commitment to retain current holdings without plans for further accumulation or funding strategies. However, the crypto community is discussing whether the Trump government could open up channels to build its Bitcoin stockpile. On the other hand, the crypto market thinks that the government should add no more altcoins like ETH, SOL, XRP, and ADA and instead continue with the current holdings seized from previous operations. Speaking on the development, economist Peter Schiff stated: “While it’s up for debate whether the government can buy more Bitcoin for the strategic reserve, the one thing the executive order makes clear is that the crypto stockpile will consist only of seized tokens, so no ETH, XRP, ADA, or SOL will be bought. So at least there’s that!” Apart from Bitcoin price drop today, all the altcoins part of US strategic reserves have seen a greater fall. Ethereum (ETH) dropped by 5.83%, Solana (SOL) is down by 4,76%, Cardano (ADA) is down by 10.83%, while XRP is holding relatively well with just 1.34% drop. Strategic Bitcoin Reserve Execution Path Ahead Metaplanet CEO Simon Gerovich stated that although Bitcoin price is falling, the market is undermining the importance of Trump’s executive order for BTC reserves. According to Gerovich, the order grants the Secretaries of Treasury and Commerce authority to devise a strategy for acquiring additional Bitcoin in a budget-neutral manner, ensuring no added costs for American taxpayers. He added: “The Executive Order is more aggressive than expected. This provision paves the way for substantial Bitcoin accumulation without burdening the national budget.” Gerovich also outlined two possible paths for the execution of a strategic Bitcoin reserve. These include: Exercise of Presidential Power : Utilizing the Exchange Stabilization Fund’s net assets, currently around $39 billion, to purchase Bitcoin immediately. Congressional Approval : Under Senator Lummis’s proposed Bitcoin Bill, the government would acquire 200,000 BTC annually for five years by leveraging the revaluation of gold, all in a budget-neutral framework. Explaining this further, Fox Business journalist Eleanor Terret said: “So Donald Trump’s Executive Order calls for two separate things — a US strategic reserve and a stockpile. The key difference between the reserve and the stockpile is that the government will not actively look for ways to purchase more of the assets contained in the stockpile. It will only explore using government funds (if they can find budget neutral ways to do that) on buying BTC”. Cynthia Lummis Pushes for Bitcoin Act Approval Commenting on the development, Senator Cynthia Lummis stated that this is just the beginning. “President Trump deserves all the credit. Now let’s pass the BITCOIN Act and make it law,” she wrote. Renowned crypto legal expert MetaLawman has drawn attention to Senator Cynthia Lummis’s BITCOIN Act, which includes a proposal for the U.S. Treasury to acquire 1,000,000 Bitcoin over five years. Referencing Section 5(a)(1)(A) of the Act, MetaLawman noted, “The BITCOIN Act calls for the Treasury to ‘purchase’ 1,000,000 Bitcoin within a five-year period.” The post Why Is Bitcoin Price Dropping Despite US Strategic Reserve? appeared first on CoinGape .
