New U.S. Crypto Reserve Disappoints – Bitcoin Struggles to Gain Momentum
Bitcoin’s potential for gains appears limited after investors reacted negatively to President Trump’s Strategic Bitcoin Reserve plan.
Instead of direct government purchases, the reserve will consist of seized crypto assets from criminal cases, dampening expectations.
Following the announcement, Bitcoin tumbled over 6%, dropping from $90,400 to below $85,000 before recovering to around $89,000. Analysts suggest that without fresh buying pressure from the U.S. government, BTC may remain in a narrow trading range. However, some see this as a significant step toward Bitcoin’s integration into global finance.
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While the move avoids potential political resistance to direct investments, Bitcoin’s technical outlook remains bearish. A descending triangle pattern has formed on the four-hour chart, and breaking above $93,000 is seen as crucial for reversing the current downtrend.
Despite short-term market disappointment, some experts argue that the establishment of a Bitcoin reserve, even through confiscated funds, could lay the groundwork for future government adoption. If regulatory conditions evolve, this initial framework might eventually lead to more proactive engagement with Bitcoin as a strategic asset.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
