Bitcoin took a sharp hit on Friday, falling nearly 5% after U.S. President Donald Trump signed an executive order creating a Strategic Bitcoin Reserve.
The flagship cryptocurrency dropped 4.63% to $87,925, with other major digital assets—including Ethereum, XRP, Cardano, and Solana—also experiencing declines of up to 5%.
The executive order introduces two key initiatives: a Strategic Bitcoin Reserve and a Digital Asset Stockpile, both designed to centralize government-held cryptocurrencies. These reserves will primarily consist of digital assets seized through criminal and civil forfeiture cases.
Billionaire investor David Sacks, a vocal advocate for Bitcoin, described the initiative as a “digital Fort Knox,” reinforcing Bitcoin’s role as a store of value comparable to gold. He also emphasized that the federal government now has a structured approach to managing its digital holdings.
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According to the executive order, the Secretaries of Treasury and Commerce will be responsible for devising budget-neutral strategies to acquire additional Bitcoin. These strategies must not impose any incremental costs on American taxpayers.
Sacks elaborated on this approach in a statement shared on social media platform X, explaining that premature government sales of Bitcoin have already resulted in over $17 billion in lost value for U.S. taxpayers.
With this new reserve strategy, the government aims to maximize the value of its digital assets rather than offloading them at inopportune times.
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The U.S. government’s digital asset holdings are estimated to include around 200,000 BTC, valued at approximately $17.7 billion. With the new reserve framework, the government will conduct a full accounting of these assets, ensuring a more strategic and long-term approach.
While the market initially reacted with volatility, industry leaders see the move as a long-term positive. CoinSwitch co-founder Ashish Singhal praised the initiative for bolstering Bitcoin reserves without burdening taxpayers.
He noted that despite short-term price fluctuations, the decision provides regulatory clarity, reduces uncertainty, and strengthens institutional confidence in digital assets.
As Trump signed the order, he was heard saying, “Made the promise, right?”—a moment that quickly went viral online. His administration’s embrace of Bitcoin marks a significant shift in U.S. policy toward digital assets, signaling a potential turning point for institutional adoption and regulatory clarity.
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