Bitcoin’s Strategic Reserve: What’s Really Happening?

I woke up today expecting a great day in crypto, only to see Bitcoin sitting around $87,000. Depending on where you are, today or tomorrow marks the Crypto Summit at the White House. We’ve also just had one of the biggest announcements in crypto history—the United States is creating a Strategic Bitcoin Reserve.

But instead of excitement, the market is reacting negatively. Many traders seem to misunderstand what’s happening, and the Bitcoin price is dropping for reasons most people don’t expect. So let’s break everything down and figure out what’s really going on.

And before we start—this is not financial advice. Now, let’s jump in.

Bitcoin’s Price Action: What’s Going On?

Bitcoin is currently around $88,000-$89,000, with a big red candle to the downside. Despite this, Bitcoin is still putting in higher lows, so there’s no need to panic just yet.

Here’s my trading strategy:

I closed 60% of my Bitcoin trade when the price was higher.

Now, I have either:

Cash secured, which means I won’t stress about price drops.

Dry powder to buy the dip if the price falls further.

This is the key to my strategy:

  1. Buy when everyone is scared.
  2. Take profits when the market is excited.

Many traders just went long at resistance—over $500 million worth of longs got liquidated. This happens because most traders act emotionally. But buying at support is always better than buying at resistance.

Now, let’s discuss the biggest news of the day—the Bitcoin Strategic Reserve.

What We Know About the Bitcoin Strategic Reserve

According to Michael Saylor, former MicroStrategy CEO, President Trump signed an executive order to create a Strategic Bitcoin Reserve. The idea is simple—Bitcoin has a fixed supply of 21 million coins, and the US wants to secure some as part of its financial strategy.

However, instead of a price pump, Bitcoin fell sharply after the announcement. Why?

The announcement doesn’t explain how they will fund the reserve.

The US government is only committing to holding its existing Bitcoin—there’s no immediate buying pressure.

This confused traders, making many believe there would be no demand boost. But that’s not how markets work. The real driver of Bitcoin’s price is market sentiment and expectations, not necessarily direct buying.

How Will the US Accumulate Bitcoin?

The executive order authorizes the Treasury and Commerce Departments to find “budget-neutral” ways to acquire more Bitcoin. That means they won’t use taxpayer money but will find alternative funding sources, such as:

$39 billion from exchange-stabilized funds.

$160 billion from selling Special Drawing Rights (SDRs).

$800 billion from gold reevaluation.

Potentially $1 trillion in “budget-neutral” Bitcoin purchases.

This is big news, showing that Bitcoin is officially recognized as a strategic asset by the US government.

Market Reactions & What Comes Next

Right now, Bitcoin is fully integrated into the financial system as a hedge against currency debasement. Some analysts believe this will push Bitcoin to $1 million per coin in the next decade.

However, in the short term, things are uncertain:

The global economy is in trouble, and Trump may push for a recession to fix it.

If a recession happens, it could crash stocks and real estate, leading to lower inflation and interest rates—which could trigger the biggest Bitcoin bull run ever.

Also, there’s a chance that Trump will make a Bitcoin tax announcement soon, which could have a major impact.

Final Thoughts & Strategy

This is a crazy but exciting time for crypto. We’ve gone from no Bitcoin ETF to a Strategic Bitcoin Reserve in just over a year. The market is reacting emotionally, but if we take a step back, we can see this is long-term bullish.

My strategy remains the same:

  • Stay neutral in uncertain times.
  • Buy at support, not resistance.
  • Take profits on the way up.
  • Keep an eye on major news events like the tax announcement.

And if you’re looking to trade, there are some bonuses available on platforms like BingX, Register and Trade to win 6,000 USDT bonus:

https://bingx.com/partner/Bukz

Stay smart, stay strategic, and I’ll see you in the next update!


Bitcoin’s Strategic Reserve: What’s Really Happening? was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.

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