Bitcoin prices dropped despite President Trump’s executive order

Bitcoin prices continued to drop despite President Trump’s executive order to establish a Strategic Bitcoin Reserve.

Bitcoin prices continued to drop on Wednesday despite President Trump’s executive order to establish a Strategic Bitcoin Reserve.

The crypto market reacted negatively to the news as investors had expected a price boost from the president’s announcement. However, the administration is yet to make any new purchases of the cryptocurrency.

"Trump’s announcement of a Strategic Crypto Reserve marks an important step toward institutional Bitcoin adoption. The market initially reacted with excitement, pushing Bitcoin more than $100,000, expecting large-scale government accumulation," said Himanshu Maradiya, Founder & Chairman, CIFDAQ.

"But in reality, no new Bitcoin purchases are happening yet. The reserve is built from existing assets, meaning there’s no immediate fresh demand. As traders recalibrated their expectations, we saw what's known as a sell-the-news reaction," he explained further.

World’s largest cryptocurrency drops 2.04%

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, Ethereum, 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 add to uncertainty

The recent announcements by President Trump regarding trade tariffs have also added to the uncertainty in the crypto market.

Besides seeking clearer regulations, traders are also factoring in the broader impact of these trade policies, which have shaken global markets and pressured riser assets, including cryptocurrencies.

"Macro pressures—like 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 Bitcoin's long-term trajectory remains strong, as President Trump’s announcement signals growing institutional recognition of Bitcoin, and the rising importance of blockchain and digital assets.

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

"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.