07.03.2025 09:30
The new policies of the United States regarding cryptocurrencies came into effect last night with an executive order signed by Donald Trump. Investors worldwide experienced significant disappointment as their expectations for prices to soar were not met. With consecutive sharp sell-offs, billions of dollars in losses were reflected on the screens within minutes.
The U.S. government has taken a significant step to regulate the use of cryptocurrencies and prevent potential crimes, as well as to recognize cryptocurrencies as a reserve currency. U.S. President Donald Trump signed an executive order formalizing the creation of a strategic bitcoin reserve.
NEW APPLICATION CAUSED DISAPPOINTMENT
However, while the signed executive order was expected to skyrocket crypto prices, it instead caused a decline. This was due to the detail regarding forfeiture in the order. According to this, the reserves will consist of bitcoins obtained through forfeiture, and the government will hold these assets in the long term. The crypto markets had planned that these massive purchases would drive prices up, arguing that the new reserve currencies would include newly acquired cryptos. The disappointment experienced was reflected in a drop in crypto prices.
DETAILS OF THE BITCOIN RESERVE PLAN REVEALED
David Sacks, the official responsible for crypto policies at the White House, stated that the reserve would consist of bitcoins held by the government and obtained through criminal or legal forfeiture. A decision that somewhat reassured investors in this plan was the government's choice to hold the bitcoins without selling them, preserving them as "digital gold."
RESERVES VALID FOR 5 CRYPTOS
In addition to Bitcoin, the reserves will also include Ethereum (Ether), XRP, Solana, and Cardano. However, how the strategic reserve will operate and how it will be reflected to taxpayers is still not clear. These uncertainties have also been reflected in the market as sales. As investors turned to selling due to unmet expectations, prices began to decline. Although the price of Bitcoin fell below $85,000 by more than 5%, it later climbed to $88,107. Similar fluctuations were observed in other cryptocurrencies, while successive sharp sales resulted in billions of dollars in losses displayed on screens within minutes.