Bitcoin Drops 6% to $84.8K as Trump’s Crypto Reserve Lacks Government Buying Power

Bitcoin tumbled 6% to $84,864.3 on Friday after U.S. President Donald Trump’s newly announced crypto reserve failed to include government-backed purchases, disappointing investors.

Trump’s executive order established a strategic Bitcoin and digital asset reserve, but it will only hold cryptocurrencies seized in criminal and civil cases, rather than acquiring new assets.

White House crypto czar David Sacks clarified that while the U.S. government currently holds around 200,000 Bitcoins worth over $17 billion, these holdings have been periodically liquidated through Coinbase (NASDAQ:COIN). The new directive halts future sales but does not introduce fresh government purchases, limiting any bullish impact on the market.

Investors had speculated that Trump might push Congress to fund Bitcoin acquisitions for the reserve, but the announcement dashed those hopes. Previously, Trump had listed Bitcoin, Ether, Solana, Cardano, and XRP as assets for inclusion. All five cryptocurrencies saw sharp declines on Friday.

Ether dropped 6%, while Solana, Cardano, and XRP slumped between 3.7% and 14%, reflecting disappointment over the lack of direct government backing.

The crypto market remains highly volatile as traders assess Trump’s policies and their long-term impact on digital assets.