Trump effect is completely gone? The White House signed a strategic reserve of cryptocurrency, and the cryptocurrency market fell instead of rising.

On Thursday, U.S. President Trump signed an executive order to establish a strategic bitcoin reserve, a day after he met with cryptocurrency industry executives at the White House.

David Sacks, a White House cryptocurrency expert, said in a post on the social media platform X that the reserve will be made up of bitcoins already owned by the federal government and confiscated as a result of criminal or civil proceedings, and the United States will not sell any of the cryptocurrencies deposited in it. Sacks wrote that the order authorizes the Treasury Secretary and the Commerce Secretary to develop "budget-neutral strategies" to acquire more bitcoins, provided that it does not increase the cost to American taxpayers.

Sacks said that taxpayers' money would not be spent to buy cryptocurrencies, so the price of Bitcoin and other tokens fell.

As of press time, Bitcoin fell 4.47% on the day to $87,895 per coin.

Attendees at the White House Cryptocurrency Summit on Friday expected the event to be the stage for Trump to formally announce plans to establish a strategic reserve that includes Bitcoin and four other cryptocurrencies.

Earlier this week, Trump announced the names of the five digital assets he expects to include in the reserve, and the market value of each asset rose sharply. The five assets, the president said, are Bitcoin, Ethereum, XRP, Solana and Cardano.

It is unclear how the reserve will work or how it will benefit taxpayers.

Trump's moves to support the cryptocurrency industry have raised concerns among some conservatives and cryptocurrency supporters that the policies are both a "reward" for the wealthy and could damage the credibility of the digital currency industry, which has spent millions of dollars to support Trump and other Republicans in last November's election.

Supporters argue that the reserve will help taxpayers benefit from the price growth of cryptocurrencies.

The president's support for the crypto industry has also raised questions about conflicts of interest. Trump's family launched the cryptocurrency Memecoin and he owns shares in the crypto platform World Liberty Financial.

His aides said Trump has handed over control of his business ventures, which are being reviewed by outside ethics lawyers.