Many market participants anticipated a “pump” from crypto after the White House passed the executive order. Then, the opposite happened, the market was a bit dumpy and flat. What happened? What to do?
**#There is a lagging effect.
It is better to be flat than to sell the significant news because “good news” takes time to react to. This is the same with ETFs where after approval, the market tends not to go anywhere first. It's only 2 weeks later that we see a significant pump. This can also happen here, where the market needs time to react and the US has “knocked the hammer” so that it gives the green light for other countries to do the same.
**#2 Bitcoin Purchase Scheme that is Still Unclear.
The scheme of this executive order is the use of a strategy: “budget neutral” where the US will not buy Bitcoin with their state budget. There are many other ways, namely by covert their gold reserves into Bitcoin, or issuing bonds to buy Bitcoin. Until now, there are still no concrete steps so this policy tends to be “floating”.
#3 Macro Situation Still Worsening.
This good news, unfortunately, is not followed by a good macro situation. Currently, the stock market is still in correction due to the fear of tariff policy as well as the potential for geopolitical situation to heat up. The market needs to stabilize before things can rally.
#4 Market Expectations are Too High.
Many market participants are relying too much on everything Trump does. As if only Trump and the US are the main ctalysts in the market. When Trump and the US did not “deliver”, there was a lot of chaos due to high expectations that were not followed by positive catalysts from other sources. #WhiteHouseCryptoSummit 