Bitcoin’s price took a hit following the official announcement of the U.S. Strategic Bitcoin Reserve . Initially trading around $90,400 , BTC dropped over 6% to $84,979 in the hours after the news broke. The reserve will only include Bitcoin seized in criminal cases , meaning no direct market purchases by the government—an aspect that many investors had hoped for. This led to a shift in market sentiment , as traders adjusted their expectations for government involvement in Bitcoin markets. Analysts now believe the short-term upside for BTC may be limited , given the lack of fresh institutional demand from this initiative. Technical Indicators Show Mixed Signals From a technical standpoint, Bitcoin’s price movement suggests that it may struggle to break above key resistance levels in the near term. Analysts have pointed out a descending triangle pattern forming on the four-hour chart, typically a bearish signal. For Bitcoin to regain bullish momentum, it would need to break and sustain levels above $93,000 . Until then, it remains vulnerable to further pullbacks and sideways trading . Long-Term Implications for Bitcoin Adoption Despite the short-term price reaction, some analysts see this announcement as a net positive for Bitcoin’s legitimacy. The fact that a strategic reserve for BTC now exists demonstrates growing institutional and governmental acknowledgment of Bitcoin as an asset class. One key argument supporting Bitcoin’s long-term value is its role as a non-inflationary asset , particularly in contrast to fiat currency. Some financial strategists believe that while the current market response is underwhelming , this reserve could be a stepping stone toward greater Bitcoin integration into national financial systems .