• Bitcoin is trading at $119,575 (-0.72%), after retreating from its ATH of $124,457 following the Treasury Department's announcement
• The market recorded a sharp decline of 3.5% following the policy shift
• The total market value of cryptocurrencies reached $2.35 trillion, with BTC dominance at 57.84%
• Trading volume remains high at $107 billion despite the increase in uncertainty
Key Factors
• Treasury Secretary Yellen confirmed that no more BTC will be purchased except what is seized from criminals, while maintaining a reserve of $15-20 billion
• Future additions to the reserve will be restricted to seizures from criminals only, ending direct purchases from the market
• The policy shift came after Trump's executive order in March 2025 that recognized Bitcoin as a strategic reserve asset
• Rising inflation and uncertainty regarding tariffs contributed to increased market volatility
• Miners sold more than 2,000 BTC in three days, increasing selling pressure
Trading Impacts
• The technical picture shows mixed signals: the Relative Strength Index (RSI) is in the overbought zone (>70) while the MACD remains positive
• Significant support formed at the $116,000 - $117,000 level; the market needs to reclaim the $120,000 level to regain bullish momentum
• ETF outflows indicate institutional caution despite a strong long-term narrative
• It is advised to apply dollar-cost averaging (DCA) strategies near support zones or use BTC options for hedging
• Watch for increasing volatility as the market reacts to the policy shift amid macroeconomic challenges
