On March 7, Bitcoin tumbled 5%, below $85,000. At the time of writing, the largest cryptocurrency in the world is sitting at $89,524.32, with a slight increase in its previous condition.

Likewise, MSTR, viewed by many as a proxy for Bitcoin exposure, fell over 8% in pre-market, as investors adjusted their views and is currently down by 4.12% in pre-market.

Without visible signs of government purchasing, MSTR’s valuation — which is heavily pinned to Bitcoin’s price fluctuations — started to sag. Those who had expected Bitcoin would have a strong response to a dovish policy pivot were dealt a blow, leading to a sharp sell-off.

Is Trump’s crypto strategy an empty symbolism?

The sell-off is in response to President Donald Trump’s executive order creating a national crypto stockpile. The decision was thought by many to trigger massive state-backed Bitcoin buys, potentially to the tune of billions. Instead, the White House explained that the screen would be limited to Bitcoin, which had already been held by the government as part of previous confiscation and civil asset forfeitures.

“The government will not acquire additional assets for the U.S. Digital Asset Stockpile beyond those obtained through forfeiture proceedings.” reads the White House Fact Sheet.

Trump’s newly appointed “Crypto Czar,” David Sacks, noted the U.S. could have made around $17 billion if the Biden government did not sell off the seized Bitcoins previously.

"This is the most underwhelming and disappointing outcome we could have expected," said Charles Edwards, the founder of Capriole Investments. Without active buying, Edwards reiterated that there was no development to the Bitcoin balances and it had already existed on the government’s balance sheet. Edwards frustratedly says, “This is a pig in lipstick."

The omission of new purchases indicates a more cautious approach than many leaders within the crypto community anticipate.

For instance, Jameson Lopp, co-founder and Chief Security Officer at Casa, says “A problem with having a bitcoin reserve under govt control is the rules are subject to change with the political winds.”