Why Didn't the Market Pump After the Executive Order News?*
Many market participants anticipated a "pump" in crypto after the White House enacted the executive order. However, the opposite happened, and the market slightly dipped and tended to be flat. What happened? What should be done?
**#1 There is a Lagging Effect.**
Better to be flat than to sell the news significantly because "good news" takes time to see its reactions. This is similar to ETFs where, after approval, the market tends to stay put for a while. It takes about 2 weeks before we see a significant pump. The same could happen here, where the market needs time to react and the US has already "nailed it down," giving the green light for other countries to do the same.
**#2 Bitcoin Purchase Scheme Still Unclear.**
The scheme from this executive order is the use of a "budget neutral" strategy where the US will not purchase Bitcoin with their national budget. There are many other ways, such as covertly converting their gold reserves to Bitcoin or issuing bonds to buy Bitcoin. So far, there have been no concrete steps, making this policy tend to be "floating."
**#3 Macro Conditions Still Deteriorating.**
This good news, unfortunately, is not followed by good macro conditions. Currently, the stock market is still in correction due to fears of tariff policies and the potential escalation of geopolitical tensions. The market needs to be stable before everything can experience a rally.
**#4 Market Expectations Are Too High.**
Many market participants rely too heavily on everything Trump does. It seems that only Trump and the US are viewed as the main catalysts in the market. When Trump and the US do not "deliver," a lot of chaos occurs due to high expectations that are not followed by positive catalysts from other sources.
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