The widespread disappointment surrounding the US Strategic Bitcoin Reserve — hailed as a historic step for Bitcoin adoption — suggests unrealistic investor expectations, according to regulatory experts.
The President signed an Executive Order on March 7 that uses Bitcoin.BTCThe ) confiscated in criminal cases rather than purchasing the asset directly The announcement triggered a reaction on the stock market. This announcement was triggered by a more than 6% drop in Bitcoin’s priceCointelegraph Markets Pro’s data shows that the value of the stock has fallen from $91,400 to $84,979.
Anastasija Plotnikova, CEO and co-founder of Fideum Inc., an infrastructure and regulatory firm focused on institutional clients, said that the reaction was a sign of unrealistic expectations in the industry.
BTC/USD, 1-month chart. Source: Cointelegraph
“It was very clear that the US government could utilize the existing BTC in their possession, aka seized funds,” She told Cointelegraph that she added:
“It is bizarre to see such a big public disappointment coming from some industry players. […] Not that long ago, even the idea of BTC Reserve held and supported by a federal government was a revolutionary idea, and now we see a very solid implementation.”
Bitcoin Reserve is an a “cautious” You can use taxpayers’ money to fund your project. “make this decision well aligned with the messaging from this administration,” Add the expert in regulatory.
Source: Margo Martin
The order doesn’t rule out government Bitcoin purchases in the future, even though the plan is not currently involving them. The US Treasury and Commerce Secretaries are authorized to create a plan. “budget-neutral strategies” If there is no cost to the taxpayer, you can buy additional Bitcoin for your reserve.
Even so, short-term disappointment among investors coupled with macroeconomic worries related to tariffs on imports could push the market downward. Bitcoin to a weekly close Analysts told Cointelegraph that if the price of gold falls below $82,000 it could lead to a greater risk of downside volatility.
Related: US Bitcoin reserve marks ‘real step’ toward global financial integration
White House Crypto Summit “dramatic shift” Biden administration
Trump signed the historical Bitcoin reserve order one day before the host of the first White House Crypto SummitThis also includes received mixed reactions From the Crypto Community
Alexander Urbelis is the general counsel at Ethereum Name Service and the chief information security officers.
Urbelis speaks to Cointelegraph
“The very fact that the summit is happening is a dramatic shift from the hands-off approach of the Biden Administration and is sure to resound with the blockchain community as well as younger voters. “
Related: Trump turned crypto from ‘oppressed industry’ to ‘centerpiece’ of US strategy
“There are high hopes for the outcome of the Crypto Summit. One of those hopes is that engagement like this with the White House will continue long after the initial meeting,” He added.
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Source: cointelegraph.com
