Crypto Market Watch: Experts Analyze Trump's Latest Decision
Investing.com - Crypto markets continued to trade in the red on Friday, but losses were narrowed from the previous day, after President Donald Trump signed an executive order establishing a Strategic Bitcoin Reserve (SBR) for the United States, along with a separate digital asset reserve.
Bitcoin price is down 2.5% over the past 24 hours, trading at $89,250 as of 06:38 ET. The digital currency fell as low as $84,688.13 on Thursday after news of the reserve was announced.
Other major cryptocurrencies such as Ether, XRP, Solana's SOL, and Cardano's ADA are also trading in the red, but losses have been narrowed compared to earlier. The assets surged earlier this week after it was announced that they would be included in the Trump administration’s new strategy.
David Sacks, the White House’s crypto and AI czar, shared on the X platform that the Strategic Bitcoin Reserve would include assets the US government currently holds, primarily from seizures by law enforcement. He stressed that the approach “would not be costly to taxpayers.”
According to the Arkham report, the US currently holds more than 198,000 bitcoins, worth about $17 billion.
The separate digital asset reserve would include “other digital assets in addition to bitcoin seized from criminal or civil proceedings,” Sacks added.
Sacks also noted that the government has no plans to purchase any additional assets beyond those already seized. According to data from Arkham, the United States currently holds around 56 ether tokens worth nearly $119 million, but there is no specific information on holdings of other tokens such as XRP, Solana or Cardano.
The initial market reaction on Thursday showed investors' disappointment with the lack of immediate government action to buy Bitcoin, especially as stocks also declined more broadly.
Responses from Crypto Experts
Following Trump's executive order, several experts in the cryptocurrency space shared their thoughts on the latest developments with Investing.com.
Geoffrey Kendrick, Analyst at Standard Chartered (OTC: SCBFF)
"While Bitcoin is still in the $80,000-95,000 range, it may be interrupted but not much change. However, I believe the next move will be to break above the highs of this range. If other macro news does not change dramatically, a breakout above the highs of this range will happen soon."
Hong Yeah, Co-founder and CEO of DEX GRVT
"This is a classic case of 'buy the rumor, sell the news'. Now that the news is out, the market has clearly priced in the uncertainty of whether SBR will buy Bitcoin or not. The current price movement is still within the previous liquidity zone. In the long term, this may drive more capital into the crypto market."
Andri Fauzan Adziima, Head of Research at Bitrue
"While this move demonstrates a long-term commitment to Bitcoin, the lack of transparency surrounding the reserve coupled with Trump's sudden inclusion of assets like XRP, SOL, and ADA has left many investors confused and concerned."
Lynn C., CMO of SONEX
"Bitcoin is facing a correction, and traders are waiting for the next move in the market. The market is currently in a lull and just needs more time to wait for the next big change."
Jason Brink, CEO of Datagram.network
"The recent price reaction of Bitcoin reflects the excitement around the decision to formalize the Bitcoin Reserve, which solidifies Bitcoin's role as a meaningful global financial asset. However, the market is also coming to terms with the fact that Bitcoin could now become a key strategic factor in the economic war between nations."
Pat Zhang, Head of Research at WOO X
"If Bitcoin fails to clear the key resistance level of $93,000 to $97,000 by mid-March, the weakness will be prolonged and could lead to a deeper correction."
Petr Kozyakov, Co-founder and CEO at Mercuryo
"In a classic sell-the-news move, Bitcoin's price fell by around 6% after Trump signed the executive order. However, this is still a positive sign for the long term, as the decision reflects a major shift in US policy that could have global implications."
While the executive order has caused short-term disappointment, experts still believe that in the long term, the outlook for Bitcoin and the cryptocurrency market remains very positive.