Analysts in the Bitcoin sector are indicating that the cryptocurrency may have limited potential for upward movement following the letdown surrounding US President Donald Trump’s Strategic Bitcoin Reserve initiative, which notably did not include direct government purchases of Bitcoin, despite some anticipations.
The executive order by Trump, signed on March 7, detailed a plan to establish a Bitcoin reserve using cryptocurrency confiscated in governmental criminal cases, rather than through direct market purchases of Bitcoin (BTC), as reported by Cointelegraph.
Post-announcement, Bitcoin experienced a drop of over 6%, plummeting from $90,400 to $84,979, according to data from Cointelegraph Markets Pro.
BTC/USD, 24-hour chart. Source: Cointelegraph
According to analysts at Bitfinex, Bitcoin’s market activity may exhibit a lack of significant upside due to the initial disappointment felt by investors. They shared with Cointelegraph:
“In light of the initial disappointment following the Strategic Bitcoin Reserve announcement, we foresee a period of more rangebound trading, as the US will refrain from making new acquisitions and is merely setting up a plausible framework to manage seized crypto assets.”
Nonetheless, other analysts regard the US Bitcoin reserve plan as a meaningful initial step toward Bitcoin’s incorporation into the global financial landscape.
“The US has genuinely made its first move towards weaving Bitcoin into the fabric of international finance, recognizing its potential as a fundamental asset for a more stable and sound monetary framework,” remarked Joe Burnett, head of market research at Unchained, to Cointelegraph.
Related: Bitcoin’s price action ‘appears highly manipulated’ — Samson Mow
Analysts Discuss Long-Term BTC Effects
Despite the immediate disappointment among investors, Trump’s Bitcoin reserve plans may represent a practical way to begin testing Bitcoin as a national reserve asset.
This “softer approach” might be more feasible and encounter less opposition from mainstream audiences, as noted by Bitfinex Analysts, who further commented:
“This strategy reflects a potential acknowledgment within the White House that launching a fund for cryptocurrency investment could face substantial pushback, thus opting for a more pragmatic and comparatively gentler method of embracing crypto assets.”
Related: Bitcoin struggles around $90K while US tariff concerns unsettle ETF investors
Meanwhile, Bitcoin is within a significant downtrend that has formed a descending triangle on the four-hour chart, indicating a bearish market disposition.
Source: Satoshi Flipper
To reverse this ongoing downtrend, Bitcoin must reclaim the critical $93,000 level, as stated by pseudonymous crypto analyst Satoshi Flipper in a March 7 post on X.
Magazine: BTC exceeding $150K is ‘speculative mania,’ SAB 121 canceled, and more: Hodlers Digest, Jan. 19 – 25
