Bitcoin has fallen more than 5% amid increased volatility in the cryptocurrency after US President Donald Trump signed a law creating a strategic cryptocurrency reserve fund in the country. Over the past 24 hours, the value of the world’s most popular cryptocurrency has fallen to about $81,712 per coin (data from Coin Metrics). At the moment, the Bitcoin rate has stabilized at around $82,381 (data from CoinDesk).
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The US Strategic Reserve Fund will be formed from digital assets seized in criminal and civil cases. The US government itself does not currently plan to purchase bitcoins for these purposes. After the announcement of the signing of the decree on the creation of the fund last week, the value of the cryptocurrency began to decline, as investors were disappointed that the program proposed by the government turned out to be rather soft.
As Bitcoin’s value has fallen, other popular cryptocurrencies such as Ethereum and XRP have also fallen in price. Despite this, some investors believe that the move to create a cryptocurrency reserve fund will have positive implications for the industry in the long term.
«”I’m absolutely convinced that the market is wrong. The market is disappointed that the government hasn’t announced its intention to immediately buy 100,000 or 200,000 bitcoins,” Matt Hougan, head of investment at Bitwise Asset Management, told CNBC. He also pointed to a recent post on X by David Sacks, the White House’s top AI and cryptocurrency official, who wrote that the U.S. would look for “budget-neutral strategies to acquire additional bitcoin, as long as those strategies don’t impose additional costs on American taxpayers.”
Hogan believes that in the current situation, it is more appropriate to consider that Trump’s order to create a cryptocurrency fund could lead to Bitcoin becoming a geopolitically important currency or asset in the future. He also expressed confidence that other governments will follow the US example and create their own cryptocurrency reserves. “The reason this issue matters is because it is the one that determines whether Bitcoin is worth $80,000 a coin or $1 million a coin,” Hogan added, expressing confidence that the decline in the cryptocurrency price will be a “short-term setback.”