With the White House Crypto Summit due to take place later today, it has already been announced that President Trump has signed an executive order on Thursday to set up a Strategic Bitcoin Reserve. With no commitment to add to the reserve by buying Bitcoin, will this just be a sell the news event, or will more details be forthcoming at the Crypto Summit?
The leader of the most powerful nation on earth signed an executive order which establishes a Strategic Bitcoin Reserve, and there is little response from the market. What is happening?
What we know about the Strategic Bitcoin Reserve
The Strategic Bitcoin Reserve will first assimilate all the Bitcoin that was seized in criminal forfeiture cases over the years. This amounts to roughly 200,000 BTC, although no complete audit has ever been published.
President Trump’s executive order and remarks in Crypto Czar David Sack’s X post on the subject, state that no Bitcoin can be sold out of the Reserve, and that it will remain as a store of value, much like in the case of the gold stored at Fort Knox.
While there is no mention so far of the government actually buying Bitcoin in order to add to its holdings, Michael Saylor, Executive Chairman of Strategy, replied to Sack’s post with the following:
“I have a few budget-neutral strategies for acquiring additional bitcoin…”
This will no doubt be discussed at Friday’s Crypto Summit, to which Michael Saylor has a confirmed invite.
In a previous post on Truth Social, President Trump also said that some cryptocurrencies would also be held by the government. These included Ethereum (ETH), Ripple (XRP), Solana (SOL), and Cardano (ADA). Although it has since been revealed that these will be kept in a Digital Asset Stockpile, separate from the Strategic Bitcoin Reserve.
With all this very positive news, why is the market showing such lukewarm interest?
Why the lack of market interest?
The problem is that the market already knows about the 200,000 BTC that the government holds. It also knows about the upcoming Crypto Summit, and it also knows that the government has said that it will not buy any extra Bitcoin using taxpayer money (although there is the possibility that extra Bitcoin could be purchased by selling other assets, or even by issuing bonds).
Therefore, unless budget-neutral strategies are successfully adopted, or perhaps an exclusion from capital gains tax is determined, market makers could have a great opportunity to manipulate the market as per a sell the news event.
Current $BTC price action contained within a triangle pattern
Source: TradingView
Probably the best way to draw the recent price action on the 4-hour $BTC chart is inside of a triangle pattern. This pattern could continue for another few days, but given that it’s $BTC, a breakout would probably come earlier, and that could even be later on Friday.
If the price breaks up, it has the chance to also break above the major ascending trendline, while if it breaks down, this could be the much heralded descent to the $73,000 support, and perhaps as far down as $69,000, which, as the top of the last bull market, has become extremely strong support.
Breakout is imminent – but up or down?
Source: TradingView
Zooming out into the daily time frame, one can see how each of the recent falls in price were bought up very quickly, leaving quite long candle wicks below, which form the bottom of the current triangle.
The price has managed to get above the $89,000 level, potentially turning it into support.
At the bottom of the chart, the RSI could be key. The long downtrend in the indicator line stretches back to mid-November of 2024. This will need to be broken to the upside. After the lowest drop for this indicator since August 2023, a breakout bounce could be imminent.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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