Bitcoin prices continued to drop despite President Trump's executive order

Bitcoin prices continued to drop despite President Trump's executive order to establish a Strategic Bitcoin Reserve. Investors had expected a price boost

President Trump's executive order to establish a Strategic Bitcoin Reserve has sparked a lackluster market reaction despite expectations of a price boost with new government Bitcoin purchases, Himanshu Maradiya, Founder & Chairman, CIFDAQ, explained.

"Trump’s announcement of a Strategic Crypto Reserve is a significant step toward institutional Bitcoin adoption. The crypto market reacted with anticipation to this development. Investors had expected a price increase above $100,000 for Bitcoin with the new administration purchases, but in reality, the focus is on the existing assets to build the reserve, indicating no immediate fresh demand," he noted.

As traders recalibrated their expectations, we saw what’s known as a sell-the-news reaction in the market, explained Maradiya.

Bitcoin, the world’s largest cryptocurrency, dropped by 2.04% since the last day and is currently trading at $83,200.67, at the time of writing this article.

Its closest peer, Ether, fell by 0.91%, while XRP, Solana and Cardano witnessed a decline of 1.30%, 4.86% and 3.54%, respectively, over the previous day.

Meanwhile, the global crypto market dipped by 1.36% to $2.74 trillion over the past day, as per Coinmarketcap.

Trump’s trade tariffs have added to the uncertainty in the crypto market. Traders are not only looking for clearer regulations but also weighing the broader impact of these trade policies, which have shaken global markets and pressured riser assets, including cryptocurrencies.

“Meanwhile, macro pressures—Trump’s tariffs on China, Mexico, and other nations, rising inflation fears, and a broader risk-off sentiment—are weighing on global markets, impacting stocks and crypto alike,” said Maradiya.

However, experts predict that BTC’s long-term trajectory remains strong.

President Trump’s announcement signals growing institutional recognition of Bitcoin, and the rising importance of blockchain and digital assets.

Sumit Gupta, co-founder, CoinDCX, stated, “The move sets a global precedent for digital asset adoption and paves the way for progressive policies that can drive innovation in the crypto space.”

“Over the long run, a government-backed Bitcoin reserve could enhance market liquidity and further reinforce Bitcoin’s role as a hedge against inflation, strengthening its position as a key financial asset in the global economy,” he added.