Bitcoin’s price saw a decline on Monday as volatility persisted following President Donald Trump’s executive order to establish a strategic bitcoin reserve in the U.S.
At 9:42 a.m. Singapore time, Bitcoin was trading at $81,712, marking a drop of over 5%, according to Coin Metrics, though it had bounced back slightly from earlier lows.
Last Thursday, the U.S. government announced the strategic reserve, which is aimed to be funded by coins seized in criminal and civil forfeiture cases, with no current plans for additional purchases.
The announcement left investors disappointed, as they had anticipated a more robust program, leading to a downturn in crypto prices. Other cryptocurrencies were also affected, with ether and XRP both declining by approximately 7.5% during the same period.
Meanwhile, despite the immediate market reaction, some investors are optimistic about the long-term implications.
Matt Hougan, Chief Investment Officer at Bitwise Asset Management, expressed that while the market may be experiencing short-term disappointment due to the absence of a major acquisition initiative, the long-term potential remains significant.
He highlighted comments on X from David Sacks, White House Crypto and AI Czar, noting that the U.S. is exploring budget-neutral strategies for acquiring additional bitcoin without additional burden for taxpayers.
Hougan argued that this executive order could set a precedent, potentially positioning bitcoin as a significant geopolitical asset, while other nations might consider establishing their own reserves, thereby enhancing bitcoin’s global significance.
Despite the current dip in cryptocurrency values, Hougan described this as a short-term setback, maintaining optimism that the market will stabilize and recognize the bullish implications for bitcoin and the broader crypto landscape in the long run.
