Crypto Market Overview

The crypto market continues to bleed as traders reassess the impact of trade tensions on global economic activity and President Donald Trump’s Bitcoin Reserve order.

Market Performance

• Bitcoin has dipped 4.8% to $81,729.
• Ethereum is down 8%, hovering just above November 2023 prices near $2,000.
• Dogecoin leads losses among the top 10 cryptos, down about 13% to $0.16.

Executive Order on Bitcoin Reserve

Despite Trump signing an Executive Order on Thursday, officially establishing the Strategic Bitcoin Reserve and authorizing the creation of a digital asset stockpile, the reaction was negative. The order directs the Secretaries of Treasury and Commerce to develop “budget-neutral strategies” for acquiring additional Bitcoin but does not allocate taxpayer funds for immediate purchases.

Singapore-based digital asset trading firm QCP Capital noted that the market reaction likely stems from the lack of an allocated budget for Bitcoin purchases in the near term.

Bitcoin dropped about 5% immediately after the announcement, according to David Lawant, head of research at FalconX. However, many analysts see this executive order as a significant step towards institutional acceptance of Bitcoin.

Bitcoin Strategic Reserve

The Strategic Reserve will be separate from the Digital Asset Stockpile, which includes a basket of altcoins, such as Ethereum. It is expected to be filled with Bitcoin seized through criminal and civil asset forfeitures.

According to Arkham Intelligence, U.S. government wallets hold approximately 198,000 BTC (worth about $16.1 billion at current prices). However, some of those holdings stem from exchange hacks and may not be available for the reserve.

The order requires a 60-day Treasury review of legal and investment implications for the reserve and explores ways to acquire more Bitcoin without affecting the federal budget.

Future Implications

While the industry reaction is mostly positive, a key question remains about whether Congress will formalize a long-term BTC acquisition strategy. The Bitcoin for America event on March 11, hosted by Senator Cynthia Lummis and the Bitcoin Policy Institute, is expected to shape further discussions on regulatory involvement. Traders are calling for more clarity on regulations as they consider the broader impact of Trump’s trade tariffs on global markets and crypto investments.