President Donald Trump signed an executive order to establish a Strategic Bitcoin Reserve, causing Bitcoin and crypto stocks to plummet. The announcement sent Bitcoin tumbling by 5% and Strategy, the largest corporate holder of Bitcoin, dropped by over 7%. The Reserve will stockpile 200,000 Bitcoin already in the government's possession, with no taxpayer money used to purchase more cryptocurrencies. The inclusion of other cryptocurrencies in the Reserve has sparked concern among Bitcoin supporters, who believe it damages Bitcoin's long-term positioning. The broader stock market also showed weakness after the executive order, with the Nasdaq Composite falling by 8% and the S&P 500 dropping by 4.3%. There are concerns about how the government plans to acquire more Bitcoin without affecting the price. The executive order is seen as a damage control attempt by Trump's administration.



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