Bitcoin's price took a hit after US President Donald Trump signed an executive order. This order sets up a working group to explore a “national digital asset stockpile.”

On January 23, Trump signed this order, aiming to boost US leadership in the crypto space. The group will look into how to create and maintain a strategic reserve of digital assets.

While this is a step forward, it doesn't meet the hopes of Bitcoin (BTC) investors. Many were waiting for a specific order about a national Bitcoin reserve. After the announcement, BTC dropped, hitting a low of $102,220.

Earlier that day, there was some excitement. Senator Cynthia Lummis, a known Bitcoin supporter, hinted on X that “big things are coming.” Many thought she was talking about a presidential order for a Bitcoin reserve. Following her post, Bitcoin jumped from $102,100 to $106,850. But that rally didn’t last long. It turned out she was actually referring to her new role as chair of the Senate Banking Subcommittee on Digital Assets.

The decline in Bitcoin's price can be partly linked to market participants digging into the details of the executive order. They realized that creating a BTC-only national reserve isn’t something that can happen overnight.

The executive order states: “The Working Group shall evaluate the potential creation and maintenance of a national digital asset stockpile and propose criteria for establishing such a stockpile, potentially derived from cryptocurrencies lawfully seized by the Federal Government through its law enforcement efforts.”

Even though the market didn't react positively right away, many industry leaders praised the news. They see it as a significant step toward broader Bitcoin adoption.

In the crypto world, it’s common to buy on rumors and sell on news. Bitcoin's price movement after Trump's order fits this pattern. Crypto analyst Will Clemente III shared this view, encouraging traders to stay patient and optimistic.

This article is for informational purposes only. It doesn’t offer investment advice or recommendations. Every investment carries risks, so it’s important to do your own research before making decisions.