Chart of the Day - Bitcoin (07.03.2025)

Bitcoin prices have retreated from recent highs, with the leading cryptocurrency falling to $88,946, as details of President Trump's long-awaited Strategic Bitcoin Reserve underwhelmed market expectations. 

Trump Establishes "Digital Fort Knox" With Executive Order

President Donald Trump signed an executive order Thursday night formally establishing a Strategic Bitcoin Reserve, making good on a campaign promise to the crypto industry. The reserve will be capitalized with Bitcoin owned by the federal government that was forfeited through criminal or civil asset proceedings, currently estimated at approximately 200,000 BTC (worth about $17.5 billion). According to White House AI and Crypto Czar David Sacks, "This means it will not cost taxpayers a dime," addressing concerns about government spending while creating what he called a "digital Fort Knox" for the cryptocurrency.

Budget-Neutral Approach Disappoints Some Investors

While the executive order fulfills Trump's campaign promise, market reaction has been tepid as details fell short of some investors' expectations. The order specifies that any additional Bitcoin acquisitions must be "budget-neutral" and impose "no incremental costs on American taxpayers." This stipulation dampened hopes for significant new government purchases that would drive up prices, leading to position unwinding by traders who had anticipated more aggressive buying.

Other Digital Assets Limited to Stockpile

In a move that surprised many, the executive order creates a separate "US Digital Asset Stockpile" for cryptocurrencies other than Bitcoin. However, unlike the Bitcoin Reserve, the government will not acquire additional assets for this stockpile beyond those obtained through forfeiture proceedings. Treasury is also authorized to determine "strategies for responsible stewardship" of these assets, including potential sales – a stark contrast to the Bitcoin Reserve, which prohibits selling the deposited BTC.

White House Crypto Summit Brings Industry to Washington

The executive order comes on the eve of the first-ever White House Digital Assets Summit, scheduled for Friday afternoon. Approximately two dozen crypto-industry executives, including Coinbase CEO Brian Armstrong, Bitcoin evangelist Michael Saylor, and Robinhood Markets' Vlad Tenev, will gather in Washington to meet with President Trump and his crypto team. The summit represents a dramatic shift from the previous administration's approach, which had taken a much harder regulatory stance following the FTX collapse.

Bitcoin (D1 Interval)

Bitcoin is currently trading above the 200-day EMA, which has acted as a key support for the largest cryptocurrency. Bulls will need to push the price back above $92,000, a level that previously served as strong support. Bears, on the other hand, will aim for a retest of the 200-day EMA, with a target at recent lows of $78,000. The RSI is at a critical juncture, where it could either form a higher high on the daily chart—confirming bullish sentiment—or retrace lower. Meanwhile, the MACD is narrowing following a bullish crossover.