The disappointment in the market arises from one main factor—Trump’s Bitcoin reserve does not include new purchases. While it prevents the US from being a major BTC seller, it does not add new buying pressure.
Bitcoin is in the spotlight for now, but uncertainty remains regarding how this policy will develop and what it truly signifies for the future of digital assets in the US. One thing is clear—Trump himself remains a major factor that could push Bitcoin’s price up or down, depending on his next moves.
Once again, this week, the cryptocurrency market has experienced significant volatility. Just last week, President Trump unexpectedly announced a cryptocurrency strategic reserve plan, initially including Ripple’s XRP, Cardano’s ADA, and Solana’s SOL, before later adding Bitcoin's BTC and Ethereum's ETH to the mix. This triggered a sharp rally followed by a steep decline, likely driven by institutional exit positions.
Last Friday, Trump again shook up the crypto space with his executive order establishing the “Strategic Bitcoin Reserve”. At the time of writing, Bitcoin is priced at $82,235, following significant fluctuations from $86,000 to $80,000 over the weekend.
Signed on March 7, the executive order creates a US Bitcoin reserve using BTC seized from criminal and civil cases—without purchasing additional coins with taxpayer funds. The reserve will be funded exclusively through forfeited Bitcoin, with the US government currently holding an estimated 200,000 BTC (valued at $17 billion).
The government’s Bitcoin stockpile originates from high-profile seizures, including:
To ensure transparency, a full audit of federal digital asset holdings has been ordered. Additionally, a separate reserve will be created for non-Bitcoin digital assets, but no further crypto purchases will be made beyond seized assets.
This move elevates Bitcoin alongside gold as a strategic national asset, marking a significant shift in how the US government approaches digital assets. However, the market's initial reaction was extreme:
While this reserve effectively removes 200,000 BTC from circulation, potentially tightening supply, the lack of active accumulation by the US government dampened bullish expectations.
Some analysts believe institutional investors may see this move as a federal endorsement of Bitcoin, reducing regulatory risks and encouraging mainstream adoption. The initiative also streamlines the fragmented management of seized crypto assets across various agencies.
However, the broader crypto community remains divided:
The volatility didn’t end there. At a crypto summit at the White House, Trump reiterated his now-famous phrase:
“Never sell your Bitcoin.”
However, his closing statement raised eyebrows:
“I don’t know if that’s right or not. Who the hell knows, right? Who knows? Who knows, but so far, it’s been right, and well, let’s keep it that way.”
Many took this as a sign that Trump isn’t deeply committed to Bitcoin but is rather playing to the crypto crowd.
Following his remarks, Bitcoin’s price dropped, triggering a broader decline across altcoins. On Monday, BTC tested the crucial $80,000 support level before rebounding to $81,500.
The key question now: Will Bitcoin hold above $80,000? A breakdown could see BTC retesting $75,000 or even $70,000 in the coming weeks.
This article is for informational purposes only and not intended as investment or financial advice. It contains opinions and speculations that are subject to change without notice.
The author and publisher disclaim any liability for decisions made based on the content of this article. Readers are advised to conduct their own research and consult a financial advisor before making investment decisions.
