Trump signs executive order on national Bitcoin strategic reserves, so why did the market plummet instead?
Policy implementation but the coin price crashed
This morning, Trump suddenly signed an executive order to establish a national Bitcoin strategic reserve. Such major news should typically lead to a surge, but Bitcoin plummeted from $90,000 to $85,000 in just one hour (it has since bounced back to $88,000). This is a classic case of 'good news fully priced in,' and some may have taken the opportunity to cut losses and flee.
The Bitcoin in this national treasury all comes from 'seizing assets'—for instance, Bitcoin seized from cases related to black markets, money laundering, and so on. The official statement is that they won't sell off the stored coins, but they also won’t spend money to buy new coins, essentially building a reserve with 'free' coins, which indeed doesn't cost taxpayers any money.
While in the long run, the government's hoarding of coins is seen as a positive, the short-term crash indicates two things:
Either the major players are offloading their assets using the news
Or the market feels that 'just hoarding without purchasing' means actual demand hasn't increased
The rebound to $88,000 indicates that some are still betting on future policy dividends.
