In a move that is seen as a win for cryptocurrency enthusiasts, US President Donald J. Trump has delivered on his promise to bolster the crypto industry by signing an executive order to retain the country’s Bitcoin (BTC) reserves. Despite this, the bitcoin market is yet to experience the full effect of this development.
Before delving further into the implications of this executive order signed last Thursday, it’s important to recap the key events of the past week. Following a period of relative calm after bitcoin’s latest dramatic swings, the cryptocurrency was hovering around the $85,000 mark. However, on Sunday, President Trump announced via his social media platforms plans to form a US-based crypto reserve comprising bitcoin and several altcoins.
The news triggered an immediate response in the market, with bitcoin rapidly soaring from its previous level by an impressive $10,000 to hit a multi-day high of $95,000. As some analysts had predicted, this surge proved to be a brief one, with the cryptocurrency plunging by $13,000 within the next 36 hours, dropping below $82,000 by Tuesday.
Yet, this downward trend didn’t persist. Contrarily, bitcoin began recovering, making several unsuccessful attempts to cross the $90,000 threshold. The most significant rejections occurred on Thursday and Friday, with the latter causing bitcoin to plummet to $85,000 once more. Interestingly, this downward shift took place just moments after Trump signed the executive order preventing the US government from selling its bitcoin assets, which are currently valued at over $17 billion.
Despite this setback, bitcoin rebounded to $91,000 just hours later. However, another rejection at this level has left bitcoin struggling below $90,000. As a crypto summit is due to take place at the White House, further market volatility is anticipated.
On a weekly scale, the market outlook appears positive for BTC and numerous altcoins, primarily due to last Friday’s market slump. However, the monthly perspective paints a different picture with most assets deeply in the red.
Market Data
Market Cap: $3T | 24H Vol: $150B | BTC Dominance: 58.3%
BTC: $88,090 (+7.4%) | ETH: $2,194 (+1.1%) | XRP: $2.49 (+18.4%)
This week’s significant crypto headlines include Ethereum sentiment hitting yearly lows, the declining Dollar Index potentially serving as a tailwind for crypto, President Nayib Bukele of El Salvador reaffirming his Bitcoin commitment despite IMF loan restrictions, and the inclusion of XRP, SOL, and ADA in the US Crypto Reserve. Additionally, Arthur Hayes, BitMEX co-founder, provides his bullish perspective on Bitcoin under Trump’s economic strategy, and the Bybit hacker reportedly launders their entire $1.4B haul in just 10 days.
We conclude with a chart analysis of Ethereum, Ripple, Cardano, Binance Coin, and Solana. For the full price analysis, click here.
