Bitcoin Price Falls. Why Trump's Strategic Reserve Just Disappointed. — Barrons.com

By Callum KeownBitcoin fell early Friday as details of a U.S. strategic reserve left traders disappointed ahead of a landmark White House crypto summit.The world's largest cryptocurrency tumbled to around $85,000 overnight before recovering to trade at around $88,000 early in the day — more than 3% down over the past 24 hours, according to CoinDesk data. The digital asset climbed back above $90,000 earlier this week, pointing to a potential recovery from its recent slump. But it's now back under pressure.President Donald Trump signed an executive order to establish a strategic Bitcoin reserve as well as a digital asset stockpile late Thursday. That should've been bullish for the market but for one key detail — it seems the government won't be buying any Bitcoin."The Reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings. This means it will not cost taxpayers a dime," White House crypto czar David Sacks said in a post on X.Deutsche Bank strategist Jim Reid said cryptocurrencies fell because the stockpile will be capitalized by forfeited assets already owned by the federal government "rather than any new government funding," in a note early Friday.The summit later in the day, and the prospect of more crypto-friendly announcements, could still spark an upturn in sentiment but for now digital assets aren't getting the bounce investors would have hoped for.Write to Callum Keown at [email protected] content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.