Bitcoin tumbles as US stockpile plans disappoint investors
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The news: Bitcoin fell by nearly 6% before paring some losses after US crypto czar David Sacks revealed that the government would not use taxpayer money to fund a strategic Bitcoin stockpile, previously ordered by US President Donald Trump.
The numbers: Bitcoin was down 5.7% before taking its loss to around 2.6% at USD87,549 at 2:45pm AEDT, according to Bloomberg data.
Other digital tokens including Ether, XRP, Cardano and Solana were also down at least 2%.
The context: Trump signed an executive order to set up the strategic Bitcoin reserve on Friday morning AEDT, according to an X post by Sacks.
The reserve will be capitalised with Bitcoin already owned by the federal government that was "forfeited as part of criminal or civil asset forfeiture proceedings", Sacks said, disappointing investors who had expected the government to buy up more Bitcoin for the stockpile.
The source: Bloomberg
