Expectations around the US cryptocurrency reserve failed to materialize and the market reacted with a decline, but the long-term consequences of this move could be much more significant
The creation of the US cryptocurrency reserve raised expectations in the market, but did not lead to a rise in prices - on the contrary, bitcoin and other assets continued to fall. Why this happened and how to look at it in the long term, our analysts analyze.
The US President did sign an executive order to create a crypto reserve, but its implementation turned out to be far from market expectations. Trump never said he would spend taxpayers' money to buy bitcoin or that the Fed would be in charge of it,” our experts note. Instead, the reserve was built up from seized assets held by the US Department of Justice.
Of course, it was possible to realize the reserve in different ways, but in the end it was created at the expense of those assets that are already there. Our expert emphasized that the market had expectations of a more aggressive model with active purchases, but it did not happen. Everyone was expecting Trump to stop by the Coinbase office, start pressing the “buy” button with his finger and buy bitcoin for hundreds of millions of dollars. But we realize it doesn't work that way.
In addition to the fact that more than half of the reported 200 thousand BTC is subject to return to the Bitfinex exchange as part of a court judgment, which makes the reserve itself much smaller than it may seem.
At the same time, our analysts consider the very fact of appearance of the crypto reserve an important event for the crypto industry. Because a year and a half ago, when the Biden administration was crushing the industry, we couldn't talk about something like this at all. Now the White House is gathering representatives of the crypto industry and discussing issues with the President.
Creating such a reserve is not exclusively an American idea. This story a few years ago was discussed in Switzerland, in Hong Kong, and now the U.S. is just the first to put it into practice” According to our analyst, such a model can be used in other countries, but it is still an open question how it will change in the future.
