Bitcoin Market Faces Pressure as U.S. Reserve Plan Fails to Excite Investors
Bitcoin prices showed little movement early Friday following a sharp dip the previous day, triggered by President Donald Trump’s announcement of a U.S. Bitcoin reserve and an associated “digital asset stockpile.”
As of 04:58 a.m. ET, Bitcoin was valued at $88,949.16, based on Coin Metrics data.
Following the executive order’s reveal on Thursday, Bitcoin momentarily fell to $84,688.13. Cryptos that had initially surged on optimism—such as Ether, XRP, and Solana’s SOL—remained in negative territory despite signs of stabilization.
White House crypto and AI strategist David Sacks clarified
White House crypto and AI strategist David Sacks clarified on X that the Bitcoin reserve would solely consist of government-held Bitcoin, seized in legal actions, ensuring no taxpayer funds would be used. Reports from Arkham indicate the U.S. currently possesses over 198,000 bitcoins, valued at approximately $17 billion.
The digital asset stockpile will consist of forfeited cryptocurrencies other than Bitcoin, with no new purchases planned beyond what has already been confiscated. The government is known to hold about 56 ether tokens worth close to $119 million, though it lacks XRP, Solana, or Cardano holdings, per Arkham’s data.
Market sentiment took a hit as traders reacted
Market sentiment took a hit as traders reacted to the absence of fresh BTC acquisitions, particularly given broader economic concerns and stock market weakness. “While this move is constructive in the long run, investors were hoping for immediate buying pressure,” commented Steven Lubka, an executive at Swan BTC.
The executive order grants Treasury and Commerce officials authority to explore cost-neutral ways to expand BTC holdings, but there is no immediate plan to accumulate additional assets.
Trump’s announcement follows his campaign’s pro-crypto rhetoric and came just ahead of the first White House Crypto Summit. However, the excitement has been overshadowed by macroeconomic uncertainties, such as inflation and trade disputes. On Wednesday, JPMorgan analysts expressed skepticism about a near-term crypto rally, citing weak investor demand and a volatile economic landscape.
Bitcoin briefly reclaimed the $90,000
Bitcoin briefly reclaimed the $90,000 mark earlier in the week but has since hovered below it. Analysts suggest that unless it can hold above this level, it risks sliding toward $70,000.
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