Bitcoin falls as Trump's executive order disappoints crypto enthusiasts
Bitcoin fell after US President Donald's executive order disappointed markets. The decline in cryptocurrencies mirrors the downtrend in the US stock markets amid fears of a widening global trade war.
ADVERTISEMENT
US President Donald Trump signed an executive order to establish a Strategic Bitcoin Reserve on Thursday, according to the White House Crypto and AI czar David Sacks, in a post on X.
The move marks a major policy fulfillment by the US president, aligning with his campaign pledge to 'make America the crypto capital of the world.'
Markets disappointed by Trump's order
Despite initial anticipation, the announcement failed to provide Bitcoin with a significant boost. Bitcoin's price fell from above $90,000 (€83,290) to about $84,600 (€78,300) initially before rebounding to around $87,000 (€80,520) at 5 am CET.
The order disappointed crypto enthusiasts as Sacks said in the post that the Reserve would be capitalised with Bitcoin owned by the federal government from criminal and civil forfeiture cases, and taxpayer money would not be used to acquire cryptocurrencies. 'The government will not acquire additional assets for the Stockpile beyond those obtained through forfeiture proceedings,' he stated.
The statement also emphasised that the government will retain its existing 200,000 bitcoin holdings as a store of value:' The US will not sell any bitcoin deposited into the Reserve. It will be kept as a store of value,' and 'Premature sales of bitcoin have already cost U.S. taxpayers over $17 billion in lost value. Now the federal government will have a strategy to maximize the value of its holdings.'
Trump's order also includes the establishment of a US Digital Asset Stockpile, 'consisting of digital assets other than Bitcoin forfeited in criminal or civil proceedings.'
Bitcoin's correlation with risk asset
Bitcoin surged last Sunday after Trump announced on the Truth Social that he would direct the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes five digital tokens including Bitcoin, Ethereum, XPR, Solana, and Cardano. The post caused a short-lived rally in these cryptocurrencies, with Bitcoin rising to above $94,000 (€87,000) from about $86,000 (€79,600). However, the gains were erased the following day after Trump confirmed a 25% tariff on Canada and Mexico, along with an additional 10% levy on Chinese imports.
Bitcoin has been in a retreat after hitting a new-time high of above $109,000 (€100,88) on 20 January, the day of Trump's inauguration. The world's largest cryptocurrency fell below $80,000 (€74,000) on 28 February, the lowest since November 2024, posting the worst month in three years.
The downtrend mirrored the broad selloff in the US stock markets as Trump's tariffs spooked investors with fears of a widening global trade war, which will significantly slow down economic growth.
Cryptocurrencies typically trade in tandem with traditional risk assets, particularly US technology stocks. Bitcoin is down 6% this year, closely aligning with the tech-heavily weighed index, Nasdaq's 6.4% year-to-date decline.
'Thus far this year, Bitcoin has proven more reactive to macroeconomic trends, including trade wars and interest rate trends. With large Wall Street firms now exposed to the coin, it is more susceptible to significant liquidity flows, thus contributing to its volatility,' Uldis Teraudklans, Chief Revenue Officer at Paybis wrote in a note.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
France 24
an hour ago
- France 24
Zelensky returns to site of stunning Oval Office shouting match
At the February 28 meeting, Trump and Vice President JD Vance berated Zelensky on live television, accusing him of being ungrateful for US aid provided since Russia's invasion three years prior, and pressing for quick negotiations to end the war. The hostile confrontation marked a turning point in Kyiv-Washington relations, which had been warm under former president Joe Biden, and raised fears that Trump would cut off US military support. The scene quickly devolved at the end of a long question-and-answer session with the press. Vance accused Zelensky of being "disrespectful" and displaying ingratitude for Trump's diplomatic efforts, after the Ukrainian leader expressed skepticism that Russian President Vladimir Putin could be trusted given his repeated violations of earlier agreements. As Zelensky defended his position in his non-native English, Trump was enraged by the Ukrainian leader's suggestion that while the United States was currently far from the fighting, "you will feel it in the future" if they appeased Putin. "You don't know that. You don't know that. Don't tell us what we're going to feel. We're trying to solve a problem. Don't tell us what we're going to feel," railed Trump, before adding: "You're not in a good position. You don't have the cards right now." As tempers flared, Vance demanded Zelensky thank the United States for the billions provided to Kyiv in military aid. "Have you said 'thank you' once?" he asked. When Zelensky attempted to respond, he was silenced by Trump. "No, no. You've done a lot of talking. Your country is in big trouble," said Trump, cutting Zelensky off. The Ukrainian leader left the White House shortly after, without signing a mineral rights deal that was a key reason for his visit. In the ensuing days, the United States temporarily cut off military aid and intelligence sharing with Ukraine, heightening European fears that Trump would side with Putin in trying to end the conflict. Shifting tides Much water has since flowed under the bridge, however. Trump, who has in the past expressed his admiration for Putin, began to lose patience with the Russian leader, as Moscow kept up its military offensive even as US special envoy Steve Witkoff engaged in feverish diplomacy to achieve a ceasefire. In April, Trump met with Zelensky at the Vatican, and accused Putin of "tapping me along" without delivering on promises. Days later, Ukraine and the United States finally signed a minerals deal, which Trump had earlier referred to as compensation for US aid. The two leaders also met face-to-face in June on the sidelines of the NATO summit at The Hague. On Friday, Trump met with Putin in Alaska to discuss the Ukrainian conflict, promising to run any proposals by both Ukraine and its European allies before agreeing to a deal. Shortly after the Putin summit, Trump invited Zelensky to the Oval Office. Perhaps wary of the contours of the previous diplomatic dust-up, Zelensky quickly said he was "grateful for the invitation." European leaders will join Zelensky in Washington on Monday, seeking above all else to prevent another Oval Office meltdown -- but also to coordinate on the path toward peace negotiations, especially on how to prevent any future Russian invasion. On the latter front, the Trump administration says it is now open to providing Ukraine security guarantees, a shift hailed Sunday by Ukrainian and European leaders. Zelensky is expected to first meet one-on-one with Trump, before they are joined by European leaders, including UK Prime Minister Keir Starmer, French President Emmanuel Macron, German Chancellor Friedrich Merz, NATO Secretary-General Mark Rutte and EU chief Ursula von der Leyen, a European government source said.
France 24
an hour ago
- France 24
Asia stocks up, oil down before Trump-Zelensky talks
US President Trump met Russian President Vladimir Putin in Alaska on Friday, but the summit failed to yield any breakthrough on a ceasefire in Ukraine. Zelensky, who will be joined in Washington by European leaders, however called a US offer of security guarantees to Ukraine "historic". "Trump and Putin walked away without a ceasefire, without even the illusion of one," said Stephen Innes at SPI Asset Management. "What they did offer was theatre: enough 'progress' for Trump to declare victory and quietly holster his double-barreled threat -- tariffs on Beijing for buying Russian barrels and sanctions on Moscow's crude," Innes said. Before the Alaska talks, US stocks wavered on Friday after mixed economic data, with retail sales up but an industrial production index and a consumer survey both down. Oil prices, which have been volatile for several days -- Russia is a major crude producer -- fell back on Monday, adding to a drop on Friday. Japan's Nikkei was up, posting a new record high and adding to gains on Friday after better-than-expected economic growth data. The Hang Seng, Shanghai, and Sydney were also higher while Taipei fell back. This week investor eyes will be on any clues on US interest rates at the Federal Reserve's annual retreat at Jackson Hole. Key figures at around 0130 GMT Tokyo - Nikkei 225: UP 0.7 percent at 43,678.12 Hong Kong - Hang Seng Index: UP 0.1 percent at 25,293.34 Shanghai - Composite: UP 0.2 percent at 3,704.76 New York - Dow: UP 0.1 percent at 44,946.12 (close) London - FTSE 100: DOWN 0.4 percent at 9,138.90 (close) Euro/dollar: DOWN at $1.1699 from $1.1704 on Friday Pound/dollar: DOWN $1.3556 at from $1.3557 Dollar/yen: UP at 147.47 yen from 146.85 yen Euro/pound: DOWN at 86.30 pence from 86.34 pence © 2025 AFP
LeMonde
6 hours ago
- LeMonde
Washington becomes the showcase for Trump's security policy
Residents of Washington, DC have gradually grown accustomed to the presence of uniformed troops and armored vehicles in the city's streets. On Monday, August 11, the American president announced that he would take control of the local police and requisition the National Guard, aiming to counter what he described as a crime wave affecting the capital. The majority of military personnel and federal agents are now deployed on the ground. US Immigration and Customs Enforcement (ICE), the Drug Enforcement Administration (DEA), the Department of Homeland Security (DHS), the Federal Bureau of Investigation (FBI), the Secret Service, Border Patrol, US Marshals... The Washington Post mapped the presence of 10 federal agencies, representing the full range of American law enforcement. Meanwhile, the city's Democratic authorities have sought to mount a legal response. After initially announcing their cooperation with the Trump administration, the city's mayor and the district's attorney general – both Democrats – filed a lawsuit to contest the decision placing police chief Pamela Smith under the authority of DEA chief Terry Cole.
