Impacts of Trump’s Executive Order on Bitcoin Price: A Deep Dive
Bitcoin’s price has plunged by 5.7% to $84,707 following an executive order by President Trump to create a government-held Bitcoin reserve. The reserve will comprise forfeited Bitcoin, ensuring no taxpayer money is spent. The order mandates an audit of past government sales of Bitcoin, which could lead to more strategic management of these digital assets.
Bitcoin’s recent price decline has been primarily attributed to President Donald Trump’s newly signed executive order, establishing a government-held Bitcoin reserve. Following this announcement, Bitcoin’s value fell by up to 5.7%, reaching a current price of $84,707. The executive order is characterized by its emphasis on utilizing Bitcoin seized through legal forfeiture, thereby incurring no cost to taxpayers.
David Sacks, a White House advisor on artificial intelligence and cryptocurrency, elaborated that the government intends to capitalize the reserve with nearly 200,000 Bitcoins obtained through criminal and civil asset forfeiture. He further clarified that these assets would not be sold but held as a store of value, likening the Reserve to a “digital Fort Knox” for what is often referred to as “digital gold.”
The executive order outlines a comprehensive review of the government’s Bitcoin assets, which the czar claimed lack appropriate auditing. Notably, it was disclosed that over the past decade, the US government sold nearly 195,000 Bitcoins for a mere $366 million—a figure that would equate to an estimated $17 billion today had they not been liquidated.
Additionally, the directive allows the Treasury and Commerce Departments to investigate budget-neutral approaches for acquiring more Bitcoin. Bitcoin, created in the aftermath of the 2008 financial crisis, remains the foremost cryptocurrency and is perceived by many as a hedge against inflation. There are suggestions that a strategic Bitcoin reserve could potentially assist in alleviating the US national debt. Despite an initial surge in prices following Trump’s election and the moment Bitcoin first surpassed $100,000, the cryptocurrency market has since experienced a notable cooling.
In summary, President Donald Trump’s executive order to establish a government-held Bitcoin reserve has notably impacted Bitcoin’s market price, resulting in a significant drop. The Reserve aims to utilize forfeited Bitcoin with no expense to taxpayers, while also enabling a full audit of the government’s past Bitcoin sales, paving the way for potentially strategic asset management moving forward.
Original Source: www.india.com
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