Bitcoin price 'Dives' after President Trump's New Order

According to data from CoinMarketCap, the price of Bitcoin suddenly plummeted on 7/3 at (Vietnam time), from the 90,000 USD threshold to below 85,000 USD/BTC. The correction caused the market capitalization of the digital currency to narrow down to only 1.740 trillion USD. Before the negative developments of Bitcoin, other cryptocurrencies also experienced strong fluctuations and adjusted within a range of less than 10%. According to Bloomberg, the price of Bitcoin fell after David Sacks - a senior advisor to the White House on AI and cryptocurrencies - declared that the US government will not use taxpayers' money to fund President Donald Trump's Bitcoin Strategic Reserve. In a recent executive order, Mr. Trump announced that this reserve will be built based on the amount of Bitcoin held by the federal government. Currently, the US government owns about 16.4 billion USD worth of Bitcoin and about 400 million USD worth of 7 other types of cryptocurrencies, mainly obtained from civil and criminal asset forfeiture cases.

In the election campaign, President Trump has pledged to establish a strategic Bitcoin reserve. This is one of many promises aimed at attracting support from the cryptocurrency industry, which has become a significant financial contributor to the political budget recently. Before taking office as President, Mr. Trump also fulfilled his promise to dismiss Gary Gensler from the position of Chairman of the U.S. Securities and Exchange Commission (SEC), thereby contributing to the significant growth of the cryptocurrency market. Recently, on the Truth Social platform, former President Trump also announced plans to include other cryptocurrencies such as Ether, Solana, Cardano, and XRP in the government's reserve. However, this information has disappointed many Bitcoin supporters. Meanwhile, observers question the source of funds that the government plans to use to buy more of these assets. Based on David Sacks's post, it seems that the market understands that the Bitcoin strategic reserve will be formed from the previously confiscated Bitcoins. Previously, many investors poured money into the market with the expectation that the government would buy more Bitcoin. But with this new development, they are withdrawing from their positions, according to Stefan von Haenisch, Managing Director of Asia-Pacific Trading at the cryptocurrency custodian company Bitgo. According to Haenisch, this legal order will empower the U.S. Secretary of the Treasury and the U.S. Secretary of Commerce to develop 'balanced budget' strategies to buy more Bitcoin, as long as it does not incur additional costs for U.S. taxpayers.