Bitcoin Continues to Decline, Market Reaction Muted Despite Trump's Bitcoin Hoarding Order

# Cryptocurrency Market Declines Amid Trade Tensions and Market Reassessment The cryptocurrency market continues its downward trend as global economic activity faces trade tension reassessments. As of 10 a.m. on March 10, Bitcoin fell 4.8% from the previous day, reaching $81,729. Ethereum saw an 8% decline, hovering around the November 2023 price of $2,000. Meanwhile, Dogecoin experienced the steepest drop among the top ten cryptocurrencies, plummeting approximately 15% to $0.17. This decline comes despite President Donald Trump's executive order on Thursday establishing a ‘Strategic Bitcoin Reserve’ and authorizing the creation of a digital asset reserve. Singapore-based digital asset trading firm QCP Capital noted in a recent report, "The decline appears to be an immediate market reaction upon realizing that no substantial budget has been allocated for Bitcoin purchases in the short term." The executive order mandates the Secretaries of the Treasury and Commerce to develop a 'budget-neutral strategy' for acquiring additional Bitcoin but does not specify taxpayer-funded spot purchases. Analysts attribute this to investor disappointment. David Lawant, Head of Research at FalconX, remarked, "Bitcoin fell around 5% immediately following the announcement but later recovered most of the losses, reflecting short-term expectations that the U.S. government would not purchase cryptocurrency assets in the open market in the short term." # Bitcoin Reserve: A Milestone for Institutional Adoption? Some industry analysts view the executive order as a significant milestone in Bitcoin's institutional adoption. The directive establishes a strategic Bitcoin reserve, separate from the digital asset reserve basket that includes Ethereum and other altcoins. The reserve is set to begin with Bitcoin seized from criminal and civil asset forfeitures, though it remains uncertain how much will ultimately be allocated. According to Arkham Intelligence, U.S. government wallets hold approximately 198,000 BTC (currently valued at around $16.1 billion). However, some of this may have been obtained from exchange hacks and could be returned to original owners, potentially excluding it from the reserve. The order also requires a 60-day Treasury review of legal and investment considerations for the reserve and mandates exploring ways to acquire additional Bitcoin without taxpayer cost, potentially by reallocating parts of the U.S. gold reserve or utilizing the Exchange Stabilization Fund. # Legislative Discussions and Market Reactions David Lawant stated, "The industry has almost universally responded positively to the order, recognizing it as setting a precedent for sovereign Bitcoin adoption.” However, whether Congress will formalize a long-term Bitcoin purchase strategy remains a key issue. While the executive order sets policy, legislation could make Bitcoin holdings a more permanent fixture in U.S. financial reserves. The ‘Bitcoin for America’ event, hosted by Senator Cynthia Lummis and the Bitcoin Policy Institute on March 11, is expected to further legislative discussions. Meanwhile, traders are calling for additional regulatory clarity, monitoring Trump's trade tariffs as they disrupt global markets and exert pressure on risk assets, including cryptocurrencies.