In a bold move, former President Donald Trump has issued an executive order aimed at creating a strategic reserve specifically for Bitcoin and altcoins seized by U.S. authorities. This initiative, named “Digital Fort Knox,” intends to treat these cryptocurrencies as a long-term asset. However, it is crucial to note that only those cryptocurrencies confiscated through legal seizures will be included in this reserve. The announcement had an immediate negative effect on the cryptocurrency market, with many speculating it led to a “sell the news” reaction.
What Impact Did Trump’s Order Have on Prices?
Following the announcement, drastic declines were recorded in the prices of Bitcoin and altcoins. Bitcoin’s value plummeted over 5% in just 24 hours, landing at $85,470, while Ethereum (ETH) saw a 6% drop, settling at $2,114.
Will Other Altcoins Suffer Similar Losses?
Yes, other altcoins also faced substantial losses. XRP decreased by 2.42%, BNB fell by 2.58%, and Solana (SOL) dropped by 5.89%. Additional altcoins, including Cardano (ADA), Dogecoin (DOGE), and Tron (TRX), experienced declines of 12.85%, 4.91%, and 2.58%, respectively. Pi Network’s Pi Coin also suffered, losing 8.68% of its value.
The executive order provides a framework for the U.S. government to securely hold Bitcoin and select altcoins obtained from legal seizures. Key points from the order include:
- The establishment of “Digital Fort Knox” as a cryptocurrency reserve.
- Long-term storage strategy for seized cryptocurrencies.
- Plans for the U.S. government to acquire more digital assets responsibly.
- Authorization for the Departments of Treasury and Commerce to develop purchasing strategies.
This development signals a significant shift in how the U.S. government may approach cryptocurrency holdings and could shape future market dynamics, depending on strategic implementation and public response.
