Market data indicates that Bitcoin volatility has reached new heights, and the futures price of Bitcoins have fallen after US President Donald Trump’s directive to establish a strategic Bitcoin Reserve for the United States was met with ambivalent responses from traders.
The market response is a sign of disappointment for traders hoping to see a more aggressive strategy in buying Bitcoin.BTCTrump’s announcement is a source of uncertainty, both in terms of the long-term effects and federal funding.
“The executive order did not meet market expectations because it failed to announce any new purchases, which many had hoped for,” Gunzilla Games Director of Web Theodore Agranat said.
“Instead, it focused solely on using confiscated tokens. Additionally, everything about the order had already been priced in ahead of time, leaving no surprises for the market.”
Bitcoin Futures at the CME Source: CME
Related: Bitcoin forgets strategic reserve ‘sell the news event’ with 4% bounce
Executive order
Trump signed the order on March 6. executive order Create a Strategic Bitcoin Reserve And, separately, an US Digital Assets Stockpile that will hold other cryptocurrency.
Initial assets will include those acquired from law enforcement agencies and legal proceedings.
This order doesn’t instruct federal officials to purchase Bitcoin. The order asks that officials instead “develop budget-neutral strategies for acquiring additional bitcoin, provided that those strategies impose no incremental costs on American taxpayers.”
In addition, it clarifies that no other cryptocurrency will be acquired by the federal government.
“The market appears disappointed by this,” Cointelegraph reported on March 7 that Sygnum research director Katalin Tablehauser told the paper.
However, “this is based on a lack of understanding of what constitutional powers the US president has,” Tischhauser stated that adding to the fact “reserve where the US government buys Bitcoin can only be authorized by the legislature.”
Bitcoin’s Spot Price and Average True Range (ATR). Source: TradingView
Muted Response
Initial reactions from traders were muted. TradingView data shows that Bitcoin’s price fell by about 2% in the week ending March 7. Meanwhile, Bitcoin’s 24-hour average true range (ATR) — a measure of volatility — broke 5,000 for the first time this cycle. As recently as last February, the price hovered at around 3,000.
Bitcoin futures also retreated. The CME’s data, the largest US derivatives exchange, showed a decline of around 2% in the forward curve of Bitcoin, which includes futures contracts with staggered expiration dates.
Futures contracts are standard agreements that represent an agreement to purchase or sell a specific asset on a future date.
CME Bitcoin July 2025 futures prices dropped by over 4%. The price drop indicates that sentiment is turning bearish for the medium term.
Executive Order No. “longer-term effects depend on the reserve’s size, the specific cryptocurrencies included and how it is managed,” Cointelegraph quoted Syracuse University professor Cristiano Belavitis.
“It’s unclear if or how much the US government would invest in crypto. If it were in the billions, the price impact could be substantial.”
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Source: cointelegraph.com
