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This March, American President Donald Trump made time to concentrate on America’s crypto policy taking a break from making all those Tariff hike announcements that have prepared other countries for a Tariff war with the USA.
Yes… a few days ago, I heard a strong statement from the Chinese side implying that if US wants Tariff war or any other kind of war, China is all ready for it!!
Well, that’s another story, coming back to March, with President Trump focusing on making some positive crypto announcements.
BTC’s prices on decline after reaching it’s peak in 20th January!
As I highlighted in my previous articles, at the end of February, [US Stock indices were declining](https://ecency.com/category/@mintymile/-tariff-turmoil-unpacking-trumps-economic-chess-game-csu) in reaction to President Trump’s Tariff proclamations. Bitcoin, too, followed the same course.
The crypto market was disappointed because there was the expectation for Trump to start making policies that will work to do what Trump said he intended which is to make America the crypto capital of the World.
Tariff Turmoil: Unpacking Trump’s Economic Chess Game
The New Trump Trade Order: Tariffs Hit North American Neighbors
Crypto Market acted triumphantly in January welcoming President Trump’s pro-crypto gestures. One of which was President Trump signing an executive order on January 25th designating a President’s working committee to devise a regulatory framework for crypto within 6 months. There was assurance that USA would establish a Strategic Bitcoin Reserve Fund as well.
Post that period BTC prices have been declining.
March 2nd: The Day Crypto Prices Bumped
On March 2nd, President Trump caused BTC and some other select cryptos to experience a price bump with him making bizarre announcements in Truth Social platform related to the US Trump Administration’s plan of building a Strategic Crypto Reserve Fund.
Here his post mentioned that the fund would comprise of ADA, XRP and SOL. He did not mention BTC in that first post, [you can check it here yourself](https://cryptopotato.com/xrp-ada-sol-skyrocket-by-double-digits-in-minutes-after-this-trump-endorsement/).
It was unbelievable!!
In his second post, President Trump clarified that this Crypto Reserve Fund would also comprise of BTC and ETH. These 2 cryptos would comprise to be the heart of the US Crypto Reserve Fund, and that Trump loves them!
This was the reason why all these cryptos experienced a price bump on March 2nd!
ADA’s price bump on March 2nd >>
SOL’s price bump on March 2nd >>
XRP’s price bump on March 2nd >>
ETH’s price bump on March 2nd >>
Public Anticipation: Will Government Crypto Purchases Boost Prices?
The general expectation was that Trump Administration would buy all these crypto assets from the US Treasury revenue funds comprising of US tax payers money and cause the prices of these crypto assets to shoot up!
Now, the good news is that there is clarification on how the US Strategic BTC Reserve Fund would be built.
No New Purchases: The Strategic BTC Reserve Explained
President Trump has officially approved the establishment of the US Strategic BTC Reserve and US Digital Asset Stockpile Fund by signing an executive order on March 6th to that effect.
US Strategic Bitcoin Reserve will be built by BTCs already in Government procession, with about 200,000 BTC around in existence that Government seized from criminal and civil cases where crimes were committed with crypto.
BTCs obtained here would go into the US Strategic Bitcoin Reserve Fund while other cryptos would go into the US Digital Asset Stockpile Fund!
No US tax payers money would be used to purchase cryptos to build these Reserve Funds!
An audit would be conducted, to find out the amount of digital asset holdings in procession of the Federal Government.
None, of these BTCs constituting the US Strategic Reserve Fund would be sold, they would be kept as store of value asset!
These details are thankfully well explained by White House’s AI and crypto Czar David Sacks.
Market Reaction: BTC’s Price Decline Despite Bullish News
Unfortunately, BTC’s price fell after President Trump signed the executive order to establish the US Strategic BTC Reserve Fund.
This may have turned out to be the sell-the-news event that the prices of BTC fell. Perhaps the investors were unhappy that the US Government would not be buying BTC to cause BTC’s price to rally!
Traders who longed BTC in the futures market expecting BTC prices to go upwards, got liquidated and exited the market. These traders who betted on BTC price to go upwards, were forced to sell their BTCs at lower prices to cover their loses and exit positions.
That’s all folks, thank you for reading!
My article can also be found in these platforms I post my content on-:
Hive — https://ecency.com/hive-150329/@mintymilecan
Publish0x — https://www.publish0x.com/@greenchic
Medium — https://medium.com/@kikctikcy
t2World — https://app.t2.world/
March Madness: Trump’s Shift to Crypto Amidst Tariff Turmoil was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.
