Trump’s First Days: What’s Next for Bitcoin Strategic Reserve?

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MARKETS TREND

Bitcoin blew past $109,000 before Trump’s inauguration on expectations of pro-crypto policies.

But no action and no mention of a Bitcoin reserve in the first few days of his presidency left traders disappointed. BTC dropped to $105,000 on Tuesday and altcoins like Ethereum (ETH) and XRP followed, wiping out earlier gains.

Trump signed over 80 executive orders on his first day back in office but none were about crypto or the Bitcoin reserve. Now his campaign promises to prioritize crypto and the industry are being looked at as market volatility continues.

 

BTC/USD

Volatility Amidst Policy Uncertainty

The crypto market saw over $816 million in liquidations as pro-crypto bets failed to materialize. Farside Investors data shows institutional players are optimistic as they see inflows into U.S.-based spot Bitcoin ETFs. Bitcoin’s market cap remains above $3.75 trillion as the disappointment settles..

Key crypto tokens trending in the U.S. include:

  • Official Trump (TRUMP): Down 16.6% post-inauguration.

  • Melania Meme (MELANIA): Experienced significant buying on the dip.

  • Department of Government Efficiency (DOGE): Riding the memecoin wave.

Despite corrections, large wallet investors continue to accumulate TRUMP and MELANIA tokens, signaling confidence in their long-term prospects.

Expert Analysis: What’s Next for Bitcoin and the Market

Analysts think Trump’s appointments to crypto-friendly roles including Treasury and SEC will lead to favorable regulations in the coming months. David Morrison, Senior Market Analyst at Trade Nation:

“The omission of crypto from Trump’s initial actions was disappointing, but his appointments signal strong support for the sector. Long-term growth looks promising.”

James Toledano, COO of Unity Wallet, highlights the risks of market speculation:

“Over-leveraged bets drove liquidations, underscoring the need for a focus on fundamentals rather than speculative milestones.”

Despite the slow start, Bitcoin remains positioned for gains, with analysts projecting an 18% rally toward $125,080. Key indicators like RSI and MACD suggest a bullish trend for BTC, while XRP targets a 25% gain, potentially reaching $3.98.

Takeaway:

Trump’s first few days had no crypto actions but his administration’s appointments are good for the industry. Traders should be cautious but optimistic, focus on long term fundamentals not short term speculation.

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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