Bitcoin experienced a significant drop, falling by more than 5% in a short period after news broke that the US Strategic Bitcoin Reserve will not be actively purchasing additional bitcoins. 

Bitcoin Falls Amid US Bitcoin Reserve Confirmation

As of writing, Bitcoin is trading at $87,088.41, marking a 3.53% decline. The market capitalization of Bitcoin has also decreased to $1.72 trillion. However, the 24-hour market volume has increased by 15%, reaching $57.11 billion.

The dip in Bitcoin’s value comes after President Trump signed an executive order establishing a strategic Bitcoin reserve. The decrease is mainly attributed to the government’s decision to refrain from purchasing additional bitcoins. Instead, the reserve will be funded using Bitcoin seized through criminal or civil asset forfeitures.

Stockpile vs Bitcoin Reserve

Another aspect of the Executive order is the confusion between Stockpile and Bitcoin Reserve.

Notably, David Sacks, the AI and crypto czar at the White House, stated that U.S. Treasury Secretary Scott Bessent and U.S. Secretary of Commerce Howard Lutnick have been authorized to “explore means of acquiring more bitcoin through avenues that will not cost the taxpayer.”

Meanwhile, the executive order also includes provisions for a broader digital asset stockpile, containing not only Bitcoin but also other assets such as Ripple (XRP), Cardano (ADA), Ethereum (ETH), and Solana (SOL), as announced by the President last weekend. The stockpile may potentially include other digital assets as well.

The key distinction between the reserve and the stockpile is that while the government will not actively seek ways to purchase more assets for the stockpile, it will explore options to acquire Bitcoin through budget-neutral methods if feasible. According to Sacks, the purpose of the stockpile is to ensure “responsible stewardship of the government’s digital assets under the U.S. Treasury.”

🚨DEEPER DIVE: So, @realDonaldTrump’s Executive Order calls for two separate things — a strategic reserve and a stockpile.

The strategic reserve will contain only $BTC (the digital asset with the most store of value) using the 200,000 or so tokens already in the government’s… https://t.co/cWYoawLekF

— Eleanor Terrett (@EleanorTerrett) March 7, 2025

The executive order and the announcement of the crypto reserve have left many traders questioning the inclusion of Ripple (XRP), Cardano (ADA), and Solana (SOL) in the reserve. Before the executive order, Trump had already indicated that the crypto reserve would include Ripple, Solana, and Cardano, alongside Bitcoin and Ethereum.

Also Read: Russia Says No to Crypto Reserve for Now