Trump's Bitcoin Reserve Announcement Sends BTC Down 11%

Republican President Donald Trump issued an executive order on Thursday to create a strategic Bitcoin reserve for the United States and hosted a historic first cryptocurrency summit at the White House on Friday. Despite optimistic expectations, the cryptocurrency market reacted with a decline, and Bitcoin was trading at its lowest prices in months on Monday.

While Bitcoin holders face short-term disappointment, the market has created an opportunity for cheap purchases ahead of the next bull run. Despite short-term volatility, Bitcoin is known for its strong institutional and now government support. Its price has nearly quadrupled in the last two years, and experts confirm that it will continue its long-term growth.

Trump announced the creation of a strategic Bitcoin reserve on Thursday, followed by a summit with cryptocurrency sector leaders on Friday, where he presented the key points of his pro-cryptocurrency plan. The strategic cryptocurrency reserve of the United States will consist of Bitcoins seized in criminal activities or acquired in civil proceedings. According to current estimates, the government owns Bitcoins worth approximately 17 billion dollars.

Following the announcement of Trump's cryptocurrency reserves, the price of Bitcoin began to fall, and this trend did not subside even after Friday's cryptocurrency summit. Many had high expectations for this meeting of top industry representatives and members of the Trump administration.

The market reacted negatively. Bitcoin lost 11% from Thursday and was trading around 82,000 dollars on Monday, its lowest price in months. Similarly, Ethereum fell 10%, and XRP lost 17% of its value from Thursday.

The summit provided an official platform for direct communication between the cryptocurrency sector and the government for the first time. Discussions at the summit indicated that the United States is moving towards forming a clear strategy for cryptocurrencies and their integration into the national economy. Bitcoin and other cryptocurrencies were added to the list of major political issues following Friday's meeting.

A key element of the discussion was the need for transparency and auditing of digital assets. While there is no concrete plan for funding Bitcoin purchases yet, Trump emphasized that the goal of this initiative is to provide liquidity during potential financial crises. The administration plans to develop strategies for acquiring more Bitcoins without additional costs to taxpayers.

Participants at the summit appreciated the government's openness to the cryptocurrency industry and expressed hope that this