The creation of strategic cryptocurrency reserves by the US, a key promise of President Donald Trump, has triggered a sharp decline in the market amid doubts about its true scope.
Expectations dashed by details of plan
The cryptocurrency market experiences sharp declines after the official creation of a Bitcoin Strategic Reserve and another specific reserve for 'altcoins', one of the main electoral promises of the American president Donald Trump. The Bitcoin fell back below the $80.000, accumulating a decline of more than 27% from its historical maximum in January, located above the $109.000.
The measure, initially greeted with great enthusiasm among investors, has been disappointing due to the details specified in the executive order signed by Trump. The US government confirmed that the strategic reserve will be composed solely of previously confiscated cryptocurrencies—approximately 200.000 bitcoins—with no clear plans for new acquisitions that could drive up market prices.
This restriction on additional purchases has frustrated investors, who had expected a more aggressive stance from the Trump administration. Many market participants had speculated that this strategic reserve would lead the government to make direct purchases of cryptocurrencies, thus driving prices up immediately and steadily. However, with the confirmation that the reserve would be limited solely to confiscated assets, this bullish expectation has quickly been dashed.
Budget constraints disappoint the market
Analysts point out that much of the decline is due to "disappointment factor"XTB emphasizes that the executive order clearly states that any additional crypto purchases must be budget-neutral, without incurring additional costs for taxpayers. This undermines a key expectation: significant cryptocurrency acquisitions by the US government.
Additionally, the order signed by Trump specifies that no new digital assets will be acquired for the altcoin reserve beyond those obtained by the government through legal confiscations. This represents a severe blow to alternative cryptocurrencies such as Ether, Cardano, Solana or XRP, which had registered significant increases in anticipation of institutional purchases by the US.
Additional impact from falls on Wall Street
In addition, the uncertainty in Wall Street has also negatively impacted the crypto market, particularly after the Nasdaq index dropped by almost 4% on Monday. This environment has led to cryptocurrencies such as Ether, Cardano y Solana to record steeper declines than Bitcoin, with drops exceeding 5% and reaching up to 10% in some cases.
The crypto market continues to show a high correlation with technology indices, and investors react with risk aversion when they perceive uncertainty in the stock market. Experts agree that as long as the correlation remains high, volatility in traditional markets will continue to directly affect the stability and confidence in digital assets.
A still diffuse regulatory framework
Another source of concern among investors stems from the lack of clarity regarding the regulatory framework that will accompany these new strategic reserves. Trump's comparison with Fort Knox, the official U.S. gold reserve, was intended to generate confidence, but it also raised investor concerns about possible future restrictions. The administration has not yet detailed what specific criteria it will use to manage these reserves, leaving significant questions about transparency and potential government interference in the cryptocurrency market.
Possible long-term positive effects
Despite the short-term blow, analysts such as those at TD Cowen emphasize the positive long-term effect that the creation of these reserves could have. The measure formalizes the role of the Bitcoin as a store of value recognized by a sovereign state, which could strengthen its credibility and adoption among institutional investors. These financial institutions could be encouraged to progressively increase their exposure to cryptocurrencies, thus helping to stabilize and boost prices again in the medium and long term.
Experts also point to the impact that the adoption of Bitcoin and other cryptocurrencies by central banks and sovereign wealth funds would have on the global market. Although these institutional investments are currently still limited, the formal existence of government reserves could trigger greater regulatory and financial acceptance.
Future perspectives
Ultimately, although the immediate reaction has been negative, the creation of strategic reserves sets an important historical precedent. Analysts suggest maintaining a cautious but optimistic view regarding the market's future. The United States' explicit commitment to digital assets could serve as a long-term catalyst, paving the way for broader and less restrictive future government initiatives.
Meanwhile, investors will have to adapt to a more regulated and possibly less speculative environment, but potentially more stable and robust in the long term.
