Bitcoin tumbles on cautious US strategic reserve plans

The news: The price of Bitcoin has tumbled to its lowest level in four months after the US government’s cautious plans for a cryptocurrency strategic reserve failed to impress markets.

The numbers: Bitcoin is currently trading at USD81,501.11, down 5.5% to its lowest level since early November.

The context: The selloff comes after US President Donald Trump issued an executive order to establish a strategic reserve of Bitcoin and other digital assets, but his crypto czar David Sacks said the stockpile would be capitalised with assets forfeited in criminal and civil proceedings and not fresh purchases from the market. The cryptocurrency had seen a run-up since December after Trump repeatedly flagged plans to establish a strategic reserve of digital assets.