The broad disappointment surrounding the US strategic Bitcoin reserve has been hailed as a historic step for adoption of Bitcoin, according to regulatory experts, but suggests unrealistic investors’ expectations.
President Donald Trump signed the executive order on March 7th. This utilizes Bitcoin (BTC) seized in a government criminal case rather than buying assets directly from the market. According to Cointelegraph Markets Pro Data, the announcement saw Bitcoin price fall by more than 6%, falling from $90,400 to $84,979.
The response shows unrealistic industry expectations, according to Anastasija Plotnikova, co-founder and CEO of Fideum, an institution-focused regulatory and blockchain infrastructure company.
BTC/USD, 1 month chart. Source: Cointelegraph
“It was very clear that the US government could own and utilize existing BTC.
“It’s strange to see such a big public disappointment from some industry players. (…) Not too long ago, but even the idea of ​​a BTC reserve held and supported by the federal government was a revolutionary idea, and now we see very robust implementation.”
Bitcoin Reserve is a “cautious” approach with taxpayer funds, which “aligns this decision well with the message from this administration,” regulatory experts added.
Source: Margo Martin
The current plan does not include government Bitcoin purchases, but orders do not rule them out in the future. The order allows U.S. Treasury and Commerce Secretaries to purchase more Bitcoin from the protected area to develop a “budget neutral strategy” unless there is additional cost to taxpayers.
Still, the disappointment of short-term investors combined with ongoing macroeconomic concerns related to import duties could potentially put Bitcoin below $82,000 and endanger more negative side volatility, analysts told Cointelegraph.
Related: US Bitcoin Reserve Marks “Real Steps” Towards Global Financial Integration
WhitehauScript Summit “Dramatic Shift” from Biden Administration
Trump signed the historic Bitcoin Reserve Order a day before he held the first White House Crypto Summit.
According to Alexander Urbelis, Generale Adviser and Chief Information Security Officer at Ethereum Name Service, the summit is at a pivotal moment for the White House to engage with the crypto industry despite its split reception.
Urbelis told the Cointelegraph:
“The very fact that the summit is happening is a dramatic change from the Biden administration’s handoff approach and will undoubtedly resonate with the blockchain community and young voters.
Related: Trump has changed crypto from “oppressed industry” to “focus” of our strategy
“There is great hope in the outcome of the crypto summit. One of those hopes is that such involvement with the White House will continue long after the first meeting,” he added.
https://www.youtube.com/watch?v=puxcqdo30jo
Magazine: SCB Tips $500K BTC, Sec Delays Ether ETF Options, etc.: Hodler’s Digest, February 23rd – March 1st
