President Trump

Bitcoin

On Jan. 23, US President Donald Trump <a href="https://cointelegraph.com/news/trump-signs-executive-order-working-group-crypto" rel="noopener noreferrer nofollow" target="_self">signed an executive order</a> creating a working group on digital asset markets tasked with finding ways to give the US leadership in the crypto industry, along with “evaluating the creation of a strategic national digital assets stockpile.”&nbsp;
While the executive order is a step forward for the crypto sector, it falls short of the national strategic Bitcoin (<a href="/bitcoin-price" rel="noopener noreferrer" target="null">BTC</a>) reserve-specific executive order that BTC investors have been anxiously waiting for. Minutes after the executive order was signed, BTC responded by trending down, briefly falling to $102,220.&nbsp;
This downside move pales in comparison to the exuberance seen in BTC price earlier in the day when US Senator and Bitcoin advocate Cynthia Lummis <a href="https://x.com/SenLummis/status/1882432096783778270" rel="noopener noreferrer nofollow" target="_blank">posted</a> on X that “big things are coming,” <a href="https://x.com/SenLummis/status/1882435768842654094" rel="noopener noreferrer nofollow" target="_blank">encouraging</a> her followers to “stay tuned” for an announcement that many assumed would be a presidential executive order for the formation of a strategic Bitcoin reserve.&nbsp;
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 <img alt="Cryptocurrencies, Bitcoin Price, Markets, White House, Donald Trump" src="https://s3.cointelegraph.com/uploads/2025-01/01949522-a209-7f5f-9963-c6ed0696b10f" title="">
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 Bitcoin open interest rising in hopes of US BTC reserve announcement. Source: <a href="https://x.com/WClementeIII/status/1882454756519793117" rel="noopener noreferrer nofollow" target="_blank">Will Clemente III</a>
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Following Lummis’ social post, Bitcoin abruptly rallied from $102,100 to $106,850 before the market realized that the senator was actually referring to her appointment as the chair of the <a href="https://cointelegraph.com/news/senator-lummis-chair-senate-subcommittee-digital-assets" rel="noopener noreferrer nofollow" target="null">Senate Banking Subcommittee on Digital Assets</a>.&nbsp;
The softening of Bitcoin price is partially connected to market participants reading the fine print of the executive order and possibly realizing that a BTC-only national strategic reserve simply cannot be created in one day by the stroke of a pen.&nbsp;
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 <img alt="Cryptocurrencies, Bitcoin Price, Markets, White House, Donald Trump" src="https://s3.cointelegraph.com/uploads/2025-01/01949525-7ff1-7354-ad84-2c9d3f9a33db" title="">
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 Views on the outcome of a strategic Bitcoin reserve executive order. Source: <a href="https://x.com/hufhaus9/status/1881294854124396616" rel="noopener noreferrer nofollow" target="_blank">Huf</a>
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Specific language within the executive order <a href="https://www.whitehouse.gov/presidential-actions/2025/01/strengthening-american-leadership-in-digital-financial-technology/" rel="noopener noreferrer nofollow" target="null">says</a>:&nbsp;
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 “The Working Group shall evaluate the potential creation and maintenance of a national digital asset stockpile and propose criteria for establishing such a stockpile, potentially derived from cryptocurrencies lawfully seized by the Federal Government through its law enforcement efforts.”&nbsp;
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Despite the lack of an immediate bullish response to the crypto-specific executive order, thought leaders and major investors in the sector lauded the news as a paradigm shift toward Bitcoin mass adoption.&nbsp;
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 <img alt="Cryptocurrencies, Bitcoin Price, Markets, White House, Donald Trump" src="https://s3.cointelegraph.com/uploads/2025-01/01949527-808a-74b8-9946-137508fa43b1" title="">
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 Michael Saylor’s view on President Trump’s crypto executive order. Source: <a href="https://x.com/saylor/status/1882532555163062635" rel="noopener noreferrer nofollow" target="_blank">Michael Saylor</a>
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Related: <a href="https://cointelegraph.com/news/bitcoin-chart-shows-diamond-pattern-with-96-k-target-what-kicks-off-the-downside" rel="noopener noreferrer nofollow" target="null">Bitcoin chart shows ‘diamond pattern’ with $96K target — What will kick off the downside?</a>
Within the crypto markets, buying the rumor and selling the news is common practice, and perhaps Bitcoin’s price action after President Trump’s executive order is in line with this trend. Crypto analyst Will Clementee III <a href="https://x.com/WClementeIII/status/1882526562760974644" rel="noopener noreferrer nofollow" target="null">shared</a> this sentiment while also encouraging traders to remain patient and positive.&nbsp;
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 <img alt="Cryptocurrencies, Bitcoin Price, Markets, White House, Donald Trump" src="https://s3.cointelegraph.com/uploads/2025-01/01949529-3eff-7811-bc6c-2ab9fd607217" title="">
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 Bitcoin open interest rising in hopes of US BTC reserve announcement. Source: <a href="https://x.com/WClementeIII/status/1882526562760974644" rel="noopener noreferrer nofollow" target="_blank">Will Clemente III</a>
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin drops after Trump signs crypto and ‘national digital asset stockpile’ executive order

Cointelegraph

Other articles published on Jan 23, 2025

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