Bitcoin Price Correction: Trump Crypto Reserve Announcement Triggers ‘Buy the Rumor, Sell the News’ Market Reaction

• Bitcoin crashed 5% in the past day, dropping below $90,000 once again
• Trump signed an Executive Order for the creation of a Strategic Bitcoin Reserve
• The US government will only hold the BTC they already have and not buy more

Bitcoin surged to a high of $95,000 after United States President Donald Trump announced the creation of the Strategic Bitcoin Reserve. This sparked speculation that the government would begin purchasing Bitcoin as part of its strategy. 

However, CoinMarketCap data shows in the past 24 hours, BTC fell 5% to $87,174.12. This happened as investors learned there were no new Bitcoin purchases—only the holding of already-seized coins.

Reality Check

A few days back, Trump stated that a US Crypto Reserve will be created with Bitcoin and Ether as key parts of the reserve, with XRP, Solana (SOL) and Cardano (ADA) also to be added. But, the excitement for this reserve was short-lived. 

Trump’s Crypto Czar, David Sacks, clarified on social media platform X that the Strategic Bitcoin Reserve would be funded only with Bitcoin already owned by the US government from criminal and civil asset forfeitures. 

Simply put, there was no taxpayer…

The post Bitcoin Price Correction: Trump Crypto Reserve Announcement Triggers ‘Buy the Rumor, Sell the News’ Market Reaction appeared first on Coin Edition.