Economic Developments – Update
In a recent announcement, U.S. President Donald Trump confirmed that the federal government will not be selling any of its cryptocurrency holdings. He emphasized that the government possesses a substantial reserve of 200,000 units of digital currency.
During the inaugural summit on cryptocurrencies held at the White House, Trump criticized the previous administration for “recklessly” selling off tens of thousands of coins, most of which were liquidated during the Biden administration before prices reached optimal levels.
Trump stated, “Assets will be retained in digital currencies, excluding the establishment of a new digital stock.” This initiative marks a strategic move aimed at acknowledging the growing influence of cryptocurrencies and signals a commitment to maintaining confidence in U.S. currency, according to analysis from financial experts.
David Sachs, referred to as the “Currency Caesar” at the White House, indicated that the summit’s purpose is to engage with leaders in the cryptocurrency sector, marking a significant step towards fostering a dialogue in the U.S. and understanding key priorities within this evolving landscape.
These remarks followed President Trump’s signing of a long-anticipated executive order aimed at establishing a strategic reserve for Bitcoin.
Sachs elaborated on the funding source for this initiative, stating that it will include assets previously confiscated as part of civil or criminal asset forfeiture processes, ensuring that “taxpayers will not incur any costs.” His comments also influenced market movements, leading to a decline in prominent cryptocurrencies.
In early trading, Bitcoin’s value dropped by 5.7%, although losses stabilized at a decrease of 2.1%, bringing the price to approximately $87,927 as of 10:19 AM Singapore time. Other notable cryptocurrencies, including Ether, XRP, Cardano, and Solana, also experienced declines exceeding 2%.
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