Market update: This is how Bitcoin & Co react to U.S. crypto reserve
Although Donald Trump fulfilled his election promise and signed an Executive Order to create a strategic Bitcoin reserve and a "Digital Asset Stockpile," the market dipped into the red.
Although Donald Trump fulfilled his election promise and signed an Executive Order to create a strategic Bitcoin reserve and a "Digital Asset Stockpile," the market dipped into the red. Investors had hoped the government would announce a plan to buy more Bitcoin and other cryptocurrencies.
Bitcoin is down about 4 percent from 24 hours ago, while ETH is down about 5 percent. XRP (-3 percent), ADA (-8 percent) and SOL (-5 percent) also lost ground.
Remarkably, these altcoins initially showed a surge in prices after Trump announced in a social media post that they would have a place in the reserve. But now that it appears that the U.S. government only uses crypto-assets it has confiscated from criminal cases, the strategic stock is uncertain. According to data Indeed, Arkham Intelligence's SOL, XRP and ADA are not among these assets.
Yet many experts do not understand the negative market reaction. Podcast host "Walker" View post on Xthe fact that the Executive Order for a strategic Bitcoin reserve is not immediately driving the price up as a sign that this "may be the best risk-adjusted time ever to buy Bitcoin." He adds, "99 percent of people just have no idea what's going on here."
Matt Hougan, Chief Investment Officer of Bitwise Invest, argues that the creation of the crypto reserve dramatically reduces the likelihood that the U.S. government will ever ban Bitcoin. In addition, he says, it increases the likelihood that other countries will soon follow suit with their own strategic Bitcoin reserves. This makes it increasingly difficult for institutional investors to consider BTC as dangerous or unsuitable.
Coinbase CEO Brian Armstrong shares that view: "I expect many G20 countries to take note of this and eventually follow the example of the US."
David Marcus, co-founder and CEO of Lightspark, View post on Xthe move "a balanced outcome and the right decision at this time." He added that he is "pleased that common sense has prevailed."
Krypto lawyer John Deaton View post on Xthe developments in perspective and points out that U.S. Treasury and Commerce Secretary Scott Bessent and Howard Lutnick have been tasked with finding "budget-neutral" ways to purchase Bitcoin. "Two years ago, people would have laughed at us if we had proposed such a thing," he says.
