The cryptomarkt continues to bleed while traders re -assess the impact of trade tensions on global economic activity and the Bitcoin reserve order from President Donald Trump.
Bitcoin has fallen 4.8% to $ 81,729, while Ethereum has fallen by 8%, just above November 2023 prices near $ 2,000. Dogecoin leads losses under the top 10 cryptos, with around 13% to $ 0.16.
That is despite the fact that Trump is one Executive order Thursday, officially setting up the strategic Bitcoin reserve and assigning the establishment of a digital assets stock.
“The knee-jerk reaction lower is probably due to the realization that no actual budget has been assigned for Bitcoin purchases in the short term” remark.
Indeed, the order gives the secretaries of Treasury and Commerce commissioning to develop “budget -neutral” strategies for acquiring extra bitcoin, but stops shortage in the use of taxpayers to carry out spot purchases.
That seems to have rubbed investors in the wrong way, according to David Lawant, head of research at Falconx.
“Bitcoin tumbled about 5% immediately after the announcement before he partially repented the most losses, as a result of the short-term expectations that the US government will not immediately connect to acquire crypto assets on the open market,” he written Friday.
Yet some industrial analysts see the move as an important milestone for the institutional acceptance of Bitcoin.
The executive order draws up a Bitcoin strategic reserve, apart from the digital assets stock, consisting of a basket with altcoins, including Ethereum.
The reserve is expected to be sown with Bitcoin seized by criminal and civil asset statement, although it is unclear how much will eventually be allocated.
US government portfolios contain around 198,000 BTC (worth around $ 16.1 billion at current prices), according to Arkham Intelligence.
However, some of those companies stem from exchange shacks and may not be available for the reserve if they are returned to earlier owners.
The order also requires a 60-day Treasury evaluation of legal and investment considerations for the reserve, while Treasury and Commerce must investigate ways to acquire more Bitcoin without influencing the federal budget or cost taxpayers.
Potential solutions include the re -assigning of part of the American gold reserves or the use of the Exchange Stabilization Fund.
“The industry’s response to the order is almost universally positive,” Lawant wrote, adding that the move is a precedent for sovereign Bitcoin adoption.
An important question now is whether the congress action will take to formalize a BTC acquisition strategy in the long term.
Although a policy for executive order sets, the legislation of Bitcoin Holdings can make a more permanent fixed value of American financial reserves.
The Bitcoin for America event on 11 March, organized by Senator Cynthia Lummis and the Bitcoin Policy Institute, is expected to be further discussions about legislative involvement.
Until that time, traders seem to demand further clarity about regulations, because they also weigh the wider impact of Trump trading rateswho rattled the global markets and under pressure, including crypto.
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