The crypto market continues to bleed as traders reassess the effects of trade tensions on global economic activity and President Donald Trump’s Bitcoin reserve order.
Bitcoin is down 8%, dipping 4.8% to $81,729. Dogecoin leads losses among the top 10 ciphers, down about 13% to $0.16.
That’s despite Trump signing it Presidential Order On Thursday, it officially establishes a strategic Bitcoin reserve and approves the creation of digital asset reserves.
“Hennieke’s response is likely due to the perception that no actual budget has been allocated for Bitcoin purchases in the near future.” Notes.
In fact, the order directs secretaries of the Treasury and Commerce to develop a “budget neutral strategy” to acquire additional Bitcoin, but stops using taxpayer funds to implement spot purchases.
According to David Lawant, Falconx’s research director, it appears to have rubbed investors the wrong way.
“Bitcoin fell by about 5% shortly after the announcement, partially recovering most losses, reflecting the short-term expectations that the US government will not immediately commit to obtaining crypto assets in the open market,” he said. I wrote it Friday.
Still, some industry analysts see the move as an important milestone in the institutional acceptance of Bitcoin.
The executive order establishes a Bitcoin Strategic Reserve, apart from digital asset stockpiles, including baskets of altcoins, including Ethereum.
The reserve is expected to be sown with Bitcoin seized through criminal and civil assets forfeiture, but it is unclear how much money will ultimately be allocated.
The US government wallet holds approximately 198,000 BTC (worth around $16.1 billion at its current price). Arkham Intelligence.
However, some of these holdings come from Exchange hacking and may not be available due to the reserve if sent back to previous owners.
The order also requires a 60-day Treasury review of legal and investment considerations in reserves, but the Treasury and commerce need to explore ways to acquire more Bitcoin without affecting the federal budget or even affecting taxpayer costs.
Potential solutions include reallocating some of the US gold reserves and tapping on the Exchange Stabilization Fund.
“The industry’s response to the order is almost universally positive,” Lawant wrote, adding that the move would set a precedent for the adoption of sovereign Bitcoin.
The key question now is whether Congress will take action to formalise its long-term BTC acquisition strategy.
The executive order sets policies, but the law allows Bitcoin holdings to be a more permanent fixture in US financial reserves.
The March 11 Bitcoin event, hosted by Senator Cynthia Ramis and the Institute for Bitcoin Policy, is expected to form further debate on legislative involvement.
Until then, traders appear to be demanding more clarity in regulations to weigh the broader impact of Trump. Trade Tariffsrattles global markets and acquires pressure risk assets, including Crypto.
