- Bitcoin’s price dipped after Donald Trump’s executive order to form a crypto task force, falling short of expectations for more aggressive government action.
- While the announcement initially boosted Bitcoin, it quickly reversed as details revealed limited policy changes.
Bitcoin’s price recently took a hit following an announcement that initially sparked hopes of a major shift in U.S. cryptocurrency policy. After former U.S. President Donald Trump signed an executive order to establish a task force on crypto assets, many in the crypto community were expecting groundbreaking changes. However, the reality of the order’s scope led to a market correction, leaving Bitcoin slightly lower.
Trump’s executive order, signed in Washington on Thursday, was designed to create a task force that would advise the White House on crypto asset policy. The group is also tasked with assessing the feasibility of creating a reserve for crypto assets, which could potentially include cryptocurrencies seized by the government during investigations. The presence of David Sacks, a high-profile figure in both AI and cryptocurrency policy, added to the anticipation, leading many to hope for more substantial actions.
Initially, Bitcoin saw a surge in price after the announcement, rising by 2.7% to hit $106,850. Many analysts and crypto enthusiasts speculated that the task force’s creation would pave the way for greater institutional involvement and even government-backed crypto initiatives.
However, as the details of the executive order became clearer, the optimism quickly waned. Zohair Ebtekar, founder of the Split Capital crypto fund, pointed out that the crypto community’s expectations were far more ambitious than the order’s content. He explained that, contrary to expectations, the task force’s purpose appeared to focus more on evaluating potential policy frameworks rather than making direct investments in cryptocurrency, which many had hoped for.
Ebtekar further remarked, “If you think about it, even the US government buying just one Bitcoin would have a significant impact, as all other governments would follow suit. Evaluating the possibility of creating a national reserve of crypto assets means optimism as much as the news can be real.”
The announcement led to a momentary price increase, but Bitcoin’s value quickly reversed course, dipping by less than 1% as traders adjusted their expectations. The news didn’t provide the immediate, concrete actions that many had been hoping for, leaving some investors disappointed.
In the wake of the announcement, the crypto community seems to have recalibrated its expectations. While the formation of a government task force on crypto is a step forward in terms of policy exploration, it falls short of the bold moves that many were hoping for, such as large-scale government purchases of Bitcoin or clear regulatory guidelines.
Ultimately, while the announcement of the task force is a signal that the U.S. government is taking crypto seriously, it’s clear that the road to major crypto policy shifts will take time. For now, Bitcoin’s price may continue to reflect the uncertainty surrounding these developments.
