Bitcoin has experienced an 11.28% decline since the U.S. government proposed the formation of a Strategic Bitcoin Reserve (SBR). Samson Mow, the CEO of JAN3, has said that this price movement is caused by the market and other factors.
From Friday, a day after the executive order was signed, to the time of this writing, Bitcoin’s price has dropped from $90.470 to $78.791. In a post on X, Mow explained why Bitcoin did not surge past the $100,000 mark as it would have been expected after the executive order signed by President Donald Trump.
He attributed the reasons for the decline to market sentiment or other factors like liquidation, stop loss level, and responses from other markets. Moreover, Mow pointed out ‘sell-on-the-news’ as another factor, as traders usually sell their assets after major events.
BTC’s decline from over $100K to $78K
According to Mow, Bitcoin’s price falls due to the willingness of sellers to sell at a lower price. This willingness can be attributed to the general market sentiment, potential macroeconomic shocks, and intraday trading trends.
Another factor that has contributed to the fall in Bitcoin’s value is the market response to the news of the cryptocurrency market. In the U.S. national stockpile, ADA, SOL, XRP, and ETH are also listed, however, they’re kept separate from Bitcoin. While this difference especially underscores the unique character of Bitcoin, it does not protect it from fluctuations in the market.
Mow likened the Strategic Bitcoin Reserve to a ‘Fort Nakamoto,’ referencing Fort Knox, where the U.S. gold reserves are kept. The next steps consist of an official audit to determine just how many Bitcoin the US government actually owns. Currently, it is estimated the U.S currently owns 200,000 confiscated over illicit activities in the past decade.
“The establishment of the U.S. Strategic Bitcoin Reserve is complete game-changer. As President Trump begins construction of Fort Nakamoto, we will learn exactly how much Bitcoin the U.S. has and then we will start to see Secretary Lutnick initiate budget neutral strategies to accumulate Bitcoin.”
According to Mow, once the U.S. formally starts accumulating Bitcoin, it is likely to be followed globally, which can transform the landscape of the global economy.
Understanding the U.S. Bitcoin Reserve
Last week, President Donald Trump signed an executive order establishing a Bitcoin reserve from criminal and civil forfeiture assets. David Sacks, the administration’s AI & Crypto Czar confirmed that neither taxpayer funds would be used for acquisitions nor any of the Bitcoin be sold. This decision came after the government had previously sold almost 195,000 BTC, reportedly costing $17 billion.
According to Matt Hougan, chief investment officer of Bitwise Asset Management, the announcement had been misinterpreted by the market. He noted that investors anticipated large-scale acquisitions of bitcoin, which disappointed them in the short run. Despite that, Hougan is hopeful that the reserve will offer long-term impacts on Bitcoin and digital assets.
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