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Bitcoin Price Struggles Despite Trump’s Executive Order for Crypto Stockpile

Bitcoin Price Struggles

Bitcoin and the broader crypto market have faced uncertainty following U.S. President Donald Trump’s executive order, which aimed to explore the creation of a national digital asset stockpile. Despite the significant implications for the cryptocurrency industry, Bitcoin has struggled to maintain upward momentum, with its price rejecting the $106K mark and remaining stuck around $105,264 as of January 24.

Market Reaction to Trump’s Executive Order

On January 23, President Trump issued an executive order that proposed evaluating the potential for creating a national digital asset stockpile. This move is seen as a critical step in formalizing the U.S. government’s stance on digital assets, potentially including Bitcoin and other cryptocurrencies in a strategic reserve. The executive order also included the rescinding of the controversial SAB 121 rule, which had previously restricted U.S. banks from holding cryptocurrency on behalf of their clients. This repeal was celebrated by pro-crypto politicians like Senator Cynthia Lummis, who called the rule “disastrous” for the banking industry.

However, the crypto market’s reaction to this groundbreaking news has been largely subdued. Bitcoin, which had recently tested all-time highs, failed to break through the $106K resistance level. Traders and analysts have expressed confusion over the market’s lack of response, with many citing a sense of uncertainty about the true implications of the executive order.

Lack of Momentum Despite Positive News

Despite the historic nature of Trump’s order, which opens the door to increased institutional adoption and potential regulation of digital assets, Bitcoin’s price remained stagnant within a narrow range. As of now, the market has not fully priced in the potential benefits of a national digital asset stockpile, with many traders expressing disbelief at the failure of the market to rally. The uncertainty surrounding the specifics of the order has likely played a role in this muted response.

Popular trader Scott Melker, known as “The Wolf of All Streets,” noted that the market seemed “utterly confused” about the executive order’s long-term impact. The lack of a clear bullish reaction has left many in the crypto space unsure about how this will affect Bitcoin and other cryptocurrencies in the future.

A Potential Bitcoin Reserve Still Unclear

While the executive order hints at a national digital asset stockpile, the immediate prospects of Bitcoin leading the charge are uncertain. According to prediction service Polymarket, the odds of Trump creating a formal Bitcoin reserve during his first 100 days in office have now fallen to just 21%. This suggests that market participants are becoming increasingly skeptical about Bitcoin’s inclusion in the proposed stockpile, despite initial hopes that the U.S. government would adopt a more crypto-friendly stance.

Some Bitcoin enthusiasts, like Vijay Boyapati, argue that the full impact of these developments has yet to be realized. Boyapati highlighted the dramatic shift in U.S. leadership, from a previous administration that was largely hostile to Bitcoin and innovation to a more pro-crypto administration under Trump. He believes that the market has not yet priced in the positive long-term effects of these policy changes.

Bitcoin’s Price Action: Consolidation and Key Levels

On a technical front, Bitcoin’s price has been in a period of consolidation, which analysts are watching closely. Popular trader Skew pointed out that the charts for Bitcoin look strong on the lower timeframes, with key levels to watch being $102,000 and $106,000. A decisive break above $106,000 could pave the way for Bitcoin to target higher levels, potentially reaching $122,000 in the near term.

However, despite positive sentiment from some traders, the market is still hesitant, and Bitcoin’s inability to break above the $106K resistance has left many wondering when the next significant move will happen.

Conclusion: Patience and Caution

While the news surrounding Trump’s executive order and the repeal of SAB 121 is undoubtedly bullish for the cryptocurrency market, Bitcoin’s current price action reflects a sense of caution and confusion among investors. As the market digests these developments, it remains to be seen whether Bitcoin can break out of its consolidation phase and capitalize on the potential benefits of a more crypto-friendly U.S. government.

For now, traders are closely watching key price levels to determine if Bitcoin can gain momentum and break through the resistance that has kept its price from advancing further.

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Pankaj K

Pankaj is a skilled engineer with a passion for cryptocurrencies and blockchain technology. With over five years of experience in digital marketing, Pankaj is also an avid investor and trader in the crypto sphere. As a devoted fan of the Klever ecosystem, he strongly advocates for its innovative solutions and user-friendly wallet, while continuing to appreciate the Cardano project. Like my work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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