Bitcoin reserve backlash signals unrealistic industry expectations
Mar 9, 2025, 18:06 GMT+5
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The widespread disappointment surrounding the US Strategic Bitcoin Reserve — hailed as a historic step for Bitcoin adoption — suggests unrealistic investor expectations, according to regulatory experts.
President Donald Trump signed an executive order on March 7, which will utilize Bitcoin (BTC) seized in government criminal cases rather than purchasing the asset directly from the market. The announcement triggered a more than 6% drop in Bitcoin’s price, falling from $90,400 to $84,979, according to Cointelegraph Markets Pro data.
The reaction signals unrealistic industry expectations, according to Anastasija Plotnikova, co-founder and CEO of Fideum, a regulatory and blockchain infrastructure firm focused on institutions
It was very clear that the US government could utilize the existing BTC in their possession, aka seized funds,” she told Cointelegraph, adding:
Although the current plan does not involve government Bitcoin purchases, the order does not rule them out in the future. The order authorizes the US Treasury and Commerce secretaries to develop “budget-neutral strategies” to buy more Bitcoin for the reserve, provided there are no additional costs to taxpayers.
Still, the short-term investor disappointment paired with ongoing macroeconomic concerns related to import tariffs may push Bitcoin to a weekly close below $82,000, risking more downside volatility, analysts told Cointelegraph.