Bitcoin and Strategy prices drop as Trump’s crypto stockpile plan disappoints markets

Key Points

  • Bitcoin experienced a 5% drop, falling below $85,000, and is currently trading at $89,524.32.
  • MSTR, often seen as a proxy for Bitcoin investment, saw an 8% decline in pre-market trading.
  • President Trump's executive order to create a national crypto stockpile did not include new purchases, leading to a sell-off in Bitcoin and related stocks.
  • The U.S. government's decision to limit the crypto stockpile to already seized assets disappointed many in the crypto community.

Summary

On March 7, Bitcoin experienced a significant drop of 5%, falling below $85,000, and was trading at $89,524.32 at the time of writing. This decline was mirrored by MSTR, a company often viewed as a proxy for Bitcoin exposure, which saw its stock fall over 8% in pre-market trading. The sell-off was triggered by President Donald Trump's executive order to establish a national crypto stockpile, which many anticipated would lead to substantial government purchases of Bitcoin. However, the White House clarified that the stockpile would only include Bitcoin already seized by the government, not new acquisitions. This decision was met with disappointment from the crypto community, with figures like Charles Edwards of Capriole Investments describing it as an "underwhelming and disappointing outcome." The lack of new government buying led to a sharp sell-off, as investors adjusted their expectations regarding Bitcoin's response to policy changes.

yahoo
March 7, 2025
Crypto
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