Bitcoin volatility witnessed new highs and futures prices recoiled after Donald Trump’s signed executive order for strategic Bitcoin reserve for the US. Drawing unsure reactions from traders post the announcement, the value of Bitcoin declined, now trading at a price of $86,468.04.
US President Donald Trump’s strategic Bitcoin reserve barely meets expectations, the Bitcoin volatility reached new highs, and futures prices recoiled, highlighting the indecisive investor sentiment.
According to expert’s evaluation, the uncertainties and long-term impact of Trump’s Bitcoin reserve announcement have created disappointment from traders who aimed to buy Bitcoins massively, creating a negative momentum on the Bitcoin price.
Theodore Agranat, the director of Gunzila Games said that the announcement didn’t meet the hype many had hoped for. Instead of introducing new purchases, it focused only on using confiscated tokens which are already priced high in the market. Since there was nothing new or surprising about the announcement, the market retaliated instead of reconciling.
Trump’s Announcement On Strategic Bitcoin Reserve
Following his announcement of Strategic Bitcoin Reserve, Trump signed the executive order for establishing it alongside a US Digital Stockpile to hold other cryptocurrencies on March 6, a day before the White House crypto summit. The reserve and stockpile will initially hold assets acquired from the criminal and civil proceedings.
Instead of suggesting the government to buy Bitcoins, the order asks developers to build budget-neutral strategies to acquire additional Bitcoins, so that it doesn’t create a hurdle of incremental costs for the country’s taxpayers. The order highlights that Bitcoins in the reserve will be considered an order of value and can’t be sold.
It also clarifies that the federal government will not acquire any other cryptocurrencies, making the market disappointed. Reacting to the market downturn, industry experts revealed that the investors are less knowledgeable about the constitutional powers of the President, adding that the reserve, where people buy Bitcoins can only be authorized by the legislature.
In addition to Bitcoins, the major crypto coins included in Trump’s reserve are Ethereum (ETH), Cardano (ADA), XRP, and Solana (SOL). The price of XRP and ADA has shown a rise after the reserve announcement.
Strategic Bitcoin Reserve Announcement, Impact On Bitcoin Price
Following the signing of the executive order, the Bitcoin spot price dropped around 2%, while Bitcoin’s 24-hour average true range (ATR) broke 5000, marking the first time in the cycle.
Bitcoin’s futures (standardized contracts acting as an agreement to buy or sell an asset at a specific future date) were pulled back. According to the data from CME, America’s largest derivative exchange, the Bitcoin forward curve showed a 2% decline.
In addition, the CME’s Bitcoin futures price for July 2025 dropped around more than 4%, showing a bearish momentum for the coin for the medium term.
However, the executive order’s long-term impact will depend on the reserve’s size, the type of cryptocurrency included, and how will it be managed. The US administration has not revealed the amount it would invest in crypto, if it is billions, the volatility in price would be very high.
