President Trump Establishes Strategic Bitcoin Reserve, Causes Market Fluctuations
President Trump signed an executive order to create a strategic Bitcoin reserve, resulting in a sharp decline in Bitcoin’s price but a subsequent partial recovery. The reserve will consist of seized assets from criminal activities, ensuring no cost to taxpayers. Past Bitcoin sales have incurred significant losses, emphasizing the importance of this policy. The order reflects Trump’s commitment to making the U.S. a leader in cryptocurrency innovation.
President Trump has enacted an executive order establishing a strategic reserve for Bitcoin and cryptocurrencies. This decision precipitated a rapid decline in Bitcoin’s price, falling by $5,000 from $90,251 to $85,091 shortly after the announcement. As of the publication time, Bitcoin has rebounded to $87,202.
The new policy mandates the creation of a national Bitcoin and crypto stockpile, composed of digital assets seized from criminal activities, rather than selling them off as previously done. This initiative does not involve additional purchases of crypto assets by the government.
David Sacks, the White House lead on artificial intelligence and crypto, detailed the executive order, highlighting that the reserve will be funded by forfeited Bitcoin, ensuring no expense to taxpayers. While the U.S. government is believed to possess approximately 200,000 Bitcoin, an audit of these assets has not yet been completed. The executive order also directs a comprehensive assessment of the federal government’s digital asset holdings.
The Bitcoin in this reserve is intended to be preserved as a long-term investment, akin to a digital Fort Knox, whereas past sales of Bitcoin have resulted in over $17 billion in taxpayer losses. Furthermore, the directive allows Treasury and Commerce secretaries to seek budget-neutral strategies for increasing Bitcoin holdings without imposing additional costs on citizens. Additionally, a separate digital asset stockpile will house assets other than Bitcoin acquired through forfeiture.
This executive order honors President Trump’s commitment to establishing the U.S. as the leading nation in cryptocurrency innovation. Various officials have expressed gratitude for the President’s decisive action in advancing digital asset policy, emphasizing the administration’s dedication to this technology. Following Trump’s campaign promises, Bitcoin experienced significant upward momentum, peaking on December 17th after his election victory.
It is advisable for investors to conduct their due diligence regarding cryptocurrencies, as investment decisions carry inherent risks. The Daily Hodl refrains from offering investment advice.
In summary, President Trump’s recent executive order establishes a strategic Bitcoin and crypto reserve, contributing to a significant market fluctuation. The reserve will leverage forfeited digital assets, indicating a shift in how the government manages its cryptocurrency holdings. Furthermore, this directive demonstrates the administration’s aim to position the U.S. as a pioneer in the digital asset space while safeguarding taxpayer interests. Investors are urged to carefully consider potential risks in the cryptocurrency market.
Original Source: dailyhodl.com
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