Bitcoin (BTC) faces considerable volatility during the ongoing session as it struggles to maintain its position above $90,000. The flagship cryptocurrency has been marginally down over the past 24 hours and trading around $89,500. BTC had dropped to a low of $84,718 earlier in the session before rebounding to its current levels. Markets tanked despite President Donald Trump signing an executive order to establish a strategic Bitcoin reserve. The crypto market cap is down 1% and currently sits at $2.90 trillion. Donald Trump Signs Executive Order To Establish Bitcoin Reserve US President Donald Trump has signed an executive order to establish a strategic reserve of cryptocurrencies consisting of tokens owned by the government. However, markets were disappointed after expecting the government to announce a plan to buy new tokens. The announcement was made ahead of a meeting with crypto executives at the White House scheduled for Friday. White House AI and Crypto Szar David Sacks stated in a post on X, “A Strategic Bitcoin Reserve will be capitalized with bitcoin owned by the federal government that was seized as part of criminal or civil asset forfeiture proceedings.” The executive order kept open the possibility of buying BTC in the future, authorizing the US Commerce and Treasury Secretaries to develop budget-neutral strategies for acquiring additional Bitcoin, provided they do not impose an incremental cost on American taxpayers. Andrew O’Neill, Digital Assets Managing Director at S&P Global Ratings called the executive order “mainly symbolic,” adding it is the first time BTC is formally recognized as a reserve asset. “The significance of this executive order is mainly symbolic, as it marks the first time Bitcoin is formally recognized as a reserve asset of the United States government. The reserve will only include Bitcoin already owned by the US government. There is no indication yet of how much, if any, would be acquired, nor a timeline. Markets Left Unimpressed Donald Trump’s executive order establishing a Bitcoin strategic reserve failed to impress markets, with BTC and other altcoins declining following the announcement. BTC fell over 5% following the announcement and is struggling to reclaim $90,000 as volatility hits the market and investor sentiment. The US government owns around 200,000 BTC seized during various criminal and civil proceedings. Trump’s promise to create a strategic reserve and friendlier regulations propelled BTC past $100,000 and reached a new all-time high. However, many in the community felt let down by the final outcome. Charles Edwards, founder of Bitcoin-focused hedge fund Capriole Investments, did not mince words, stating, “This is the most underwhelming and disappointing outcome we could have expected for this week. No active buying means this is just a fancy title for Bitcoin holdings that already existed with the Govt. This is a pig in lipstick.” All Eyes On Crypto Summit Market watchers have turned their attention to Friday’s White House Crypto Summit, with Trump expected to use the platform to formally announce his plans. However, it is unclear how the reserve would work or benefit taxpayers. According to Sacks, the federal government has a strategy to maximize the value of its Bitcoin holdings held in the reserve. However, he did not offer any further details. Sacks stated, “The U.S. will not sell any bitcoin deposited into the Reserve. It will be kept as a store of value. The Reserve is like a digital Fort Knox for the cryptocurrency often called 'digital gold.” Trump’s attempts to woo the crypto industry, which spent millions on his campaign, have drawn concern from some conservative quarters and crypto backers over giveaways to a hugely wealthy and influential community. Is A Rally On The Cards? BTC registered a rapid decline last week as it plunged below $80,000 on Friday before recovering to reclaim lost ground. While price action remains volatile, indicators suggest the flagship cryptocurrency is entering a crucial phase in its trajectory. One analyst pointed to the “fear and greed” index, which has historically helped identify when Bitcoin is in the early stages of a bull run or when excessive optimism could lead to a correction. According to the analyst, Bitcoin has entered the “Optimism Stage,” historically associated with the early stages of a strong rally. When Bitcoin reached these levels in the past, it has almost always gained momentum and led to further price increases. However, the analyst warned that if the index continues rising, it could enter the “Euphoria” stage, indicating excessive market optimism and a steep correction. Bitcoin (BTC) Price Analysis BTC has faced considerable volatility over the past few sessions as it struggles to establish a foothold above $90,000. BTC traded in the red for most of last week, starting with a substantial decline of 4.65% on Monday. The price fell below $90,000 on Tuesday and declined to $84,129 on Wednesday as selling pressure intensified. Despite the overwhelming selling pressure, BTC recovered on Thursday, reaching an intraday high of $87,045 before settling at $84,656, ultimately registering a marginal increase. BTC plunged below $80,000 on Friday on its way to an intraday low of $78,173. However, it recovered from this level to reclaim $80,000 and settle at $84,362, ultimately registering a marginal decline. Source: TradingView Sentiment changed on Saturday as BTC registered an increase of over 2% and settled at $86,182. Markets rallied on Sunday, and BTC surged over 9% to reclaim $90,000, move past the 20-day SMA, and settle at $94,322. However, the rally lost momentum on Monday, and BTC fell nearly 9%, slipping below $90,000 and the 20-day SMA and settling at $86,225. BTC fell to an intraday low of $81,500 on Tuesday as selling pressure intensified. However, the price recovered from this level to register an increase of over 1%, settling at $87,316. Buyers retained control on Wednesday as BTC rose nearly 4% to reclaim $90,000 and settle at $90,639. The price fell back in the red on Thursday after failing to move past the 20-day SMA, registering a marginal decline to slip below $90,000 and settle at $89,957. BTC plunged to $84,718 during the ongoing session as selling pressure intensified. However, it has rebounded and is trading at $89,500, marginally down as buyers and sellers struggle to establish control. If BTC continues its decline and slips below the 200-day SMA, it could drop to $80,000. Buyers will look to move past the 20-day SMA and reclaim $90,000. The RSI is below the neutral zone and pointing downwards after being rejected from this level, indicating a bearish sentiment. The MACD is also indicating indecisiveness among traders. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
