On January 23, U.S. President Donald Trump signed an executive order that establishes a new working group focused on digital asset markets. This group will explore avenues for the U.S. to take a leadership role in the crypto space and assess the feasibility of creating a national strategic digital assets stockpile.
While the executive order signals progress for the crypto industry, it doesn’t meet the high expectations of those hoping for an executive order dedicated specifically to a national Bitcoin reserve. The news had an immediate effect on Bitcoin, which saw a sharp decline, briefly dipping to $102,220.
This decline contrasts with the excitement earlier in the day when U.S. Senator and Bitcoin supporter Cynthia Lummis teased “big things are coming” on X, hinting at an announcement many believed would involve the creation of a national Bitcoin reserve. After Lummis’ post, Bitcoin surged from $102,100 to $106,850. However, the rally was short-lived as it became clear that Lummis was referring to her new position as chair of the Senate Banking Subcommittee on Digital Assets, rather than any executive order on Bitcoin.
The dip in Bitcoin’s price can partly be attributed to market participants scrutinizing the fine details of the executive order. A closer reading reveals that the creation of a BTC-exclusive national reserve is not something that could be established overnight. The order includes language stating that the working group will assess the potential creation of a national digital asset stockpile, which could include cryptocurrencies seized by the government during law enforcement actions.
Though the executive order did not spark an immediate surge in Bitcoin prices, industry experts and prominent investors in the crypto space viewed it as a positive step toward broader Bitcoin adoption. As is often the case in the crypto world, the initial reaction might have been a case of “buying the rumor, selling the news.” Analyst Will Clemente III echoed this sentiment, advising traders to stay optimistic and patient.
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