Bitcoin Dips After Trump Executive Order Falls Short of Expectations

The executive order created a task force to advise the White House on crypto asset policy and assess the feasibility of creating a reserve for these assets

Bitcoin's value dropped on Friday after a US executive order to set up a task force on crypto assets fell short of some traders' expectations.

The order set up a task force to advise the White House on crypto asset policy and look into the possibility of creating a reserve of these assets, which could include cryptocurrencies seized by the government in the course of investigations.

Trump signed the order on Thursday in Washington, attended by David Sacks, the White House "czar" for artificial intelligence and cryptocurrencies.

“What the crypto community on X wanted is completely different from reality. If you think about it, even the US government buying a single bitcoin would have a major impact, as all other governments would follow suit. Looking into the possibility of creating a national crypto asset reserve instills optimism as much as the news can be,” said Zohair Ebtekar, founder of crypto fund Split Capital.

Bitcoin, the world's largest cryptocurrency by market capitalisation, rose slightly after Trump signed the order, gaining 2.7% to trade at $106,850. However, the gains narrowed after the details of the order were disclosed. Bitcoin is now down less than 1%.