With American stocks unstableConsumer confidence in the economy diving and the whispers of a growing potential recession Less silentThe economy under the second term of President Donald Trump was about as stable as the first week of addicts. With this turbulence as a backdrop, the cryptocurrency industry hoped for Thursday executive decree The establishment of a federal Bitcoin reserve would stimulate at least an increase in the blockchain ecosystem. Instead, the value of Bitcoin has decreased sharply, and a desire of hedge funds focused on the crypto-axe on the cryptocurrency called the order of Trump “the most disappointing and most disappointing result that we could have expected for this week”.
After Trump announced in January that he would sign a decree to establish a crypto stock, the market responded with enthusiasm and that prices increased accordingly. Bitcoin enriched At a summit of more than $ 109,000 in January (after exceeding the $ 100,000 mark for the first time in early December).
Friday, at its lowest point following Trump’s decree, Bitcoin dropped by about 5% to $ 85,000. He had recovered a bit at the time of publication, but still hovered only about $ 88,000, almost 20% nose compared to its January summit (and more than 2.2% per day).
“Just a fancy title for Bitcoin Holdings that already existed”
A large part of the disappointing reaction comes from the use of actions by the reserve already held by the government through convulsions or civil confiscations. Although the order leaves the door open to any purchases of government bitcoin in the future, the crypto of the White House David Sacks clarified That the executive power was only “authorized to develop non -budgetary strategies to acquire additional bitcoin, provided that these strategies impose any additional cost on American taxpayers”.
It was not what the Crypto bros hoped. “It is the most disappointing and most disappointing result that we could have expected this week,” said Charles Edwards, founder of the Capriole Investments hedge fund, focused on crypto, poster on x (via Reuters). “No active purchase means that it is just a sophisticated title for Bitcoin Holdings that already existed with the government. It is a pig in lipstick.”
In addition, the decree also requires “storage of American digital assets” for other cryptographic token, which, according to Trump, will include Ether, XRP, Solana and Cardano.
Potential conflicts of interest
The leaders of the cryptography industry hold a summit in the White House on Friday in, among other subjects, to obtain a better configuration of land concerning the future regulatory application. Among the participants is the CEO of Coinbase, Brian Armstrong, whose company was one of the many cases of application recently abandoned by Trump’s dry. (Practical!) Reuters reports Whether analysts believe that the market needs a reason to become optimistic again, as a clearer pro-Crypto regulatory policy or a sign that the American federal reserve plans to reduce interest rates.
Trump managed to court the industry during his 2024 campaign. In addition to committing to create a reserve of federal crypto, he promised To make America “the cryptographic capital of the planet” and the president of Fire dry, Gary Gensler, the first day. (In November, he announced that he resign As Trump took office on January 20.)
The 47th American president also has a participation in Crypto, which sparked alarms (if not howling sirens) of conflicts of potential interests. First of all, he and the first lady Melania Trump have mecoins, currently down 80 and 90%Respectively, their peaks of all time just before its inauguration. Trump also has a participation in the Crypto World Liberty Financial Platform, which would have I bought more than $ 20 million in cryptocurrencies – including more than $ 10 million ether, $ 9.9 million in Bitcoin WBTC derivative and $ 1.68 million moving – before the Summit of the White House on Friday.
This article originally appeared on engadget to
