On March 7, 2025, U.S. President Trump signed a historic executive order announcing the establishment of a strategic Bitcoin reserve in the United States, incorporating approximately 200,000 Bitcoins (currently valued at about $16.92 billion) held by the federal government into the national reserve system, and pledging not to sell these assets. However, this policy did not boost market confidence as expected; the price of Bitcoin quickly fell after the news was announced, dropping over 5% in a single day and briefly falling below $85,000, with a volatility of 10%. Why did this seemingly positive policy instead trigger market sell-offs?
$BTC The key point of the market's disappointment is:
Lack of incremental funds entering the market: Previously, the cryptocurrency community generally expected that the government might purchase Bitcoin through the fiscal budget, creating long-term demand support. However, the actual policy only locks existing confiscated assets without signaling new purchases.
The semantic divergence between 'reserve' and 'storage': Analysts point out that 'reserve' typically implies active management (such as buying and selling adjustments of gold reserves), while the current policy is more akin to 'passive storage,' which weakens the market's imagination of government intervention in pricing.
Other cryptocurrencies were not included: Trump had previously hinted that Ethereum, Ripple, and others might be included in the reserves, but ultimately only Bitcoin was included, leading to some funds withdrawing from 'Trump concept coins.'
