The reserve will be funded by coins that have been seized in criminal and civil forfeiture cases and there are no plans for the U.S. government to buy more bitcoin. After the strategic reserve announcement last Thursday, crypto prices declined as investors were disappointed it wasn't a more aggressive program.
Other cryptocurrency prices also proved volatile on Monday. Both ether and XRP were trading in the green by 4:12 a.m. after earlier falling around 7.5%.
Some investors, however, said the move to establish a reserve was bullish in the long-term.