Here is Why Bitcoin is Struggling Despite US Establishing Strategic Bitcoin Reserve

Trump’s executive order establishing the United States Strategic Bitcoin Reserve, anticipated to skyrocket Bitcoin’s price, has yielded disappointing results.

According to CoinGecko data, despite the order, Bitcoin has struggled to meet enthusiasts’ expectations, showing minimal growth. At the time of the order’s implementation (3:00 AM GMT), Bitcoin traded at $88,065. Following a dip and subsequent recovery, the current price hovers around $89,000, representing a negligible 0.3% increase.

Why is Bitcoin Struggling?

The executive order lacks specifics on funding the Bitcoin reserve beyond existing government holdings. It’s essentially a pledge to maintain the status quo without outlining plans for expansion or additional funding.

Speculation within the cryptocurrency community centers on whether the Trump administration might establish mechanisms to increase its Bitcoin reserves. Conversely, many believe the government should refrain from acquiring additional altcoins such as ETH, SOL, XRP, and ADA, focusing instead on retaining assets seized in prior operations.

Speaking on the development, economist Peter Schiff stated:

“While it’s up for debate whether the government can buy more Bitcoin for the strategic reserve, the one thing the executive order makes clear is that the crypto stockpile will consist only of seized tokens, so no ETH, XRP, ADA, or SOL will be bought. So at least there’s that!”

Today’s Bitcoin price struggle is overshadowed by even steeper losses across altcoins held in US strategic reserves. Ethereum (ETH) plummeted 5.83%, Solana (SOL) fell 4.76%, and Cardano (ADA) experienced a significant 10.83% drop. In contrast, XRP demonstrated relative resilience, declining only 1.34%.

SBR Execution Path Ahead

Despite Bitcoin’s price struggles, Metaplanet CEO Simon Gerovich asserts the market is downplaying the significance of President Trump’s executive order concerning BTC reserves. Gerovich explains the order empowers the Secretaries of Treasury and Commerce to develop a plan for acquiring more Bitcoin without increasing the national budget, thereby avoiding additional taxpayer expense.

“The Executive Order is more aggressive than expected. This provision paves the way for substantial Bitcoin accumulation without burdening the national budget,” he added.

Notably, Senator Cynthia Lummis hailed recent developments as merely the beginning, crediting President Trump and urging swift passage of her BITCOIN Act. The Act, highlighted by crypto legal expert MetaLawman, proposes a significant government investment: the U.S. Treasury would acquire one million Bitcoin over five years.