Following President Donald Trump’s executive order to establish a Bitcoin Strategic Reserve, the cryptocurrency’s value dropped 6%, hitting a low of $84,900 before recovering slightly to $87,700. Investors were disappointed as the order did not include government plans to actively purchase Bitcoin.

Trump’s crypto policy advisor, David Sacks, stated that the reserve would be funded by Bitcoin seized in criminal or civil cases, ensuring it costs taxpayers nothing. He estimated that the U.S. government owns around 200,000 Bitcoin but called for an official audit. The order also directed the Treasury and Commerce Departments to explore budget-neutral ways to acquire more Bitcoin.

Despite Trump’s pledge to make the U.S. a crypto leader, many investors found the announcement underwhelming. Spencer Hakimian, CEO of Tolou Capital Management, criticized the plan, saying it lacked substance and had little market impact.

Additionally, a separate digital asset stockpile will be created, including other seized cryptocurrencies like Ethereum, XRP, Solana, and Cardano. Sacks argued that premature Bitcoin sales had cost U.S. taxpayers over $17 billion, and the reserve aims to maximize asset value. However, the market remains skeptical of its effectiveness.