Trump's Strategic Bitcoin Reserve Sparks Crypto Market Reaction

Trump's Strategic Bitcoin Reserve Sparks Crypto Market Reaction

Cryptocurrencies experienced volatility Friday following President Donald Trump’s executive order establishing a Strategic Bitcoin Reserve (SBR) and a separate digital asset stockpile. Bitcoin, down 2.5% to $89,250, had initially plunged to $84,688.13 Thursday before recovering. Other major tokens like Ether, XRP, Solana’s SOL, and Cardano’s ADA also pared losses after rallying earlier in the week on Trump’s signals.

The SBR will consist of Bitcoin seized by law enforcement, with no taxpayer cost, according to David Sacks, White House crypto and AI czar. The U.S. holds over 198,000 bitcoins worth $17 billion and 56 Ether tokens valued at $119 million. The digital asset stockpile will include other seized assets, but no new purchases are planned, though budget-neutral strategies may be explored.

Market Reaction and Expert Insights

The initial market reaction reflected investor disappointment over the lack of immediate Bitcoin purchases, amid broader equity weakness. Experts shared mixed views:

• Geoffrey Kendrick (Standard Chartered): Expects Bitcoin to break out of its $80-95k range soon, advising to buy weekend dips.
• Hong Yea (GRVT): Sees the price movement as a "buy the rumor, sell the news" scenario, expecting a market bounce back.
• Andri Fauzan Adziima (Bitrue): Notes confusion over the reserve’s management and Trump’s inclusion of XRP, SOL, and ADA, fueling uncertainty.
• Lynn C. (SONEX): Suggests the market is in a cooldown phase, awaiting the next move.
• Jason Brink (Datagram.network): Highlights BTC’s role in global finance and potential economic proxy wars.
• Pat Zhang (WOO X): Warns of a potential downside if Bitcoin fails to break $93,000-$97,000 by March 20.
• Petr Kozyakov (Mercuryo): Views the SBR as long-term bullish, indicating a policy shift, despite short-term trader disappointment.

While the market reacts to the news, the long-term outlook for Bitcoin and cryptocurrencies remains positive, with potential for increased capital inflows and global policy shifts.