Bitcoin Reserve Marks a Turning Point
Bitcoin Reserve Faces Backlash Amid Investor Expectations
The unveiling of the US Strategic Bitcoin Reserve, widely seen as a groundbreaking moment for Bitcoin’s mainstream adoption, has been met with disappointment from many in the crypto industry. Experts argue that this reaction highlights unrealistic investor expectations.
On March 7, President Donald Trump issued an executive order establishing the reserve. However, instead of acquiring Bitcoin directly from the market, the government will rely on BTC seized in criminal cases. Following the announcement, Bitcoin’s price tumbled by more than 6%, dropping from $90,400 to $84,979, as reported by Cointelegraph Markets Pro.
Industry experts believe the reaction reveals a misalignment between expectations and reality. Anastasija Plotnikova, co-founder and CEO of blockchain regulatory firm Fideum, remarked that the government’s decision was predictable, given the availability of seized BTC.
“It was evident that the US government could leverage existing BTC in their possession,” she stated. “The public disappointment from some industry players is surprising. Not long ago, the concept of a government-backed Bitcoin reserve was revolutionary, and now we see a concrete step towards it.”
The establishment of the reserve is viewed as a prudent fiscal move that ensures taxpayer funds are managed responsibly. Plotnikova noted that this approach aligns well with the current administration’s messaging on financial caution.
While the plan does not currently involve direct Bitcoin purchases, the executive order leaves the door open for future acquisitions. The Treasury and Commerce secretaries have been tasked with formulating “budget-neutral strategies” to expand the reserve, provided it does not create additional costs for taxpayers.
Despite this potential for future expansion, the immediate market reaction has been negative. Analysts suggest that investor dissatisfaction, combined with broader economic concerns, such as rising import tariffs, could push Bitcoin below the $82,000 mark by the end of the week, increasing the likelihood of further volatility.
White House Crypto Summit Marks a Turning Point
The Bitcoin reserve order coincided with another major event in the crypto space—Trump’s first White House Crypto Summit, held just a day later. While the summit received mixed reactions from industry participants, it signaled a significant policy shift from the federal government.
Alexander Urbelis, general counsel and chief information security officer at Ethereum Name Service, described the event as a departure from the Biden administration’s previous hands-off stance on digital assets.
“The very fact that this summit is taking place represents a dramatic shift in the White House’s engagement with blockchain and cryptocurrency,” Urbelis noted. “It will likely resonate with the broader crypto community and younger voters.”
Many in the industry are hopeful that this summit will be more than a one-time event, fostering an ongoing dialogue between the crypto sector and policymakers.
With both the Bitcoin reserve initiative and the White House Crypto Summit, the US government is taking its most significant steps yet toward institutional involvement in digital assets. However, the response from investors suggests that expectations may need to be recalibrated as these policies unfold.
