Bitcoin Plummets, But Trump’s Latest Reserve Push Adds New Twist

Bitcoin’s strong pullback is deepening as risk aversion grips international markets, but a shocking policy shift from Washington could inject new momentum into the online asset. &nbsp,

The U. S. state is apparently seeking to expand its Cryptocurrency investments, a shift that—if executed—could alter the source relationships of an already tightening business.

The crypto is now trading near$ 81, 600, down 25 % from its January peak of$ 109, 000, with selling pressure intensifying as liquidity conditions tighten, according to CoinGecko. &nbsp,

” Daily price moves and ongoing Fund withdrawals are keeping chance assets under stress”, Vincent Liu, Chief Investment Officer at Kronos Research, told . ” Crypto owners need a real change in micro conditions to change mood around”.

Data from Glassnode indicates that Bitcoin’s new slip below$ 92, 000 marked a crucial inflection level. The amount corresponds with the Short-Term Holder price basis—a essential help line that, when breached, usually signals a change in market sentiment.

Investors have taken notice of what is missing from this pullback: violent dip-buying. Unlike past pullbacks that sparked renewed concentration, this time, investors have mostly stepped off. &nbsp,

According to Glassnode’s Crypto Balance Distribution heatmap, demand has softened as external risks —including the Bybit hack and escalating U. S. tariff disputes —have driven capital preservation over opportunistic buying.

The broader micro scenery isn’t helping chance attitude either. &nbsp,

The ASX 200 has slipped into correction territory, then 10 % off its February top, while inflation fears and U. S. Federal Reserve hawkishness have kept traditional businesses under pressure. &nbsp,

Investors are also contending with fresh trade tensions between the U. S. and China. Still, headlines stemming from the White House are offering crypto investors some hope.

At a closed-door roundtable earlier this week, White House official Bo Hines told crypto industry leaders that the Trump administration intends to accumulate as much Bitcoin as possible, reinforcing the government’s commitment to its recent Bitcoin reserve announcement.

It also comes as Senator Cynthia Lummis reintroduces the Bitcoin Act, a bill that would require the U. S. government to acquire up to one million BTC—worth roughly$ 80 billion at current prices. &nbsp,

The White House has signaled support for enshrining the reserve into law, though it remains unclear how the purchases would be executed beyond what’s already been announced.

Administration officials insist acquisitions will be “budget neutral”, potentially relying on revalued gold certificates at the Federal Reserve to finance the plan.

If Washington moves forward with large-scale purchases, supply constraints may emerge, adding a fundamental catalyst for future price appreciation.

” Bitcoin’s futures remain in contango, suggesting relative strength in Bitcoin amid broader market uncertainty”, Alexia Theodorou, Kraken’s head of derivatives, told in an emailed statement.

” The rising Bitcoin dominance ratio further indicates that some investors may be rotating capital out of altcoins and into Bitcoin as a safe have n”, he added.

Still, without renewed buying interest, Bitcoin could enter a prolonged consolidation or deeper correction before stabilizing, Glassnode wrote.

” Whether the two priced-in potential rate cuts will happen this year is a major macro concern”, Marco Lim, managing director at Solowin Holdings and founding partner of MaiCapital, told .

” Although CPI came in better than expected, leading to a bounce in crypto and U. S. equities, most of Trump’s impact on crypto seems to have already been priced in”, he added.