Bitcoin tumbles 6% on disappointment about US strategic reserve

Bitcoin fell nearly 6% on Friday, expanding the losses for the second session amid renewed selling pressures after the disappointing reveal of the US strategic reserve plans. 

Bitcoin also sustained losses after Wall Street’s steep decline, with the global trade war still weighing on the financial markets and growth forecasts.

The Price

Bitcoin fell 6% at Bitstamp today to $84,713, with a session-high at $91,277.

On Thursday, bitcoin marked the first loss in three sessions as US stock indices swooned.

Crypto Market Value 

The market value of cryptocurrencies fell by over $130 billion to a total of $2910.

US Strategic Reserve

US President Donald Trump signed an executive order forming a crypto strategic reserve that includes bitcoin, in a step aimed at bolstering US status as leader in the crypto market.

Trump said that other cryptocurrencies such as ethereum, solana, cardano, and ripple, will be among the assets in the reserve, which proved disappointing to bitcoin supporters who refused the inclusion of other cryptocurrencies.

US officials noted that the reserve will include cryptocurrencies already owned by the US government after seizures and won’t cost taxpayers a cent.

The US currently owns $16.4 billion worth of bitcoin, and $400 million worth of seven other cryptocurrencies, most from seizures related to criminal and civil cases.

The order also allows for the Treasury and Trade Departments to develop financially-neutral strategies to acquire more bitcoin, provided it doesn’t put additional costs on US taxpayers.

Crypto experts were disappointed by the lack of actual bitcoin purchases by the government, which would’ve boosted prices.

There are also concerns that a US strategic reserve would hurt the status of bitcoin as a decentralized currency, and would be used later by the government to settle debts or manipulate the market.

Wall Street

Wall Street marked massive losses on Thursday, with both S&P 500 and NASDAQ hitting four-month lows, amid mounting concerns about Trump’s aggressive trade policies.