Bitcoin (BTC) has experienced a sharp decline of over 5% in the past 24 hours, currently trading at around $88,100. This downturn follows US President Donald Trump’s announcement regarding the establishment of a Strategic Bitcoin Reserve, which failed to meet market expectations.
Bitcoin Strategic Reserve Falls Short
On March 7, President Trump signed an executive order creating the Strategic Bitcoin Reserve, aiming to manage the country’s Bitcoin holdings. Many market participants had anticipated that the government would announce plans to acquire more BTC using taxpayer funds or Treasury resources. However, Trump’s crypto advisor, David Sacks, clarified that the reserve would solely consist of Bitcoin already seized by the government through criminal or civil asset forfeitures.
“This means it will not cost taxpayers a dime,” Sacks noted in a post on X (formerly Twitter), adding that the government would explore budget-neutral strategies to acquire more Bitcoin in the future. While this move prevents immediate selling pressure from seized BTC, it dampened hopes for fresh capital inflows into the market, leading to a significant sell-off.
Just a few minutes ago, President Trump signed an Executive Order to establish a Strategic Bitcoin Reserve.
— David Sacks (@davidsacks47) March 7, 2025
The Reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings. This means it…
Spot Bitcoin ETFs See Massive Outflows
Bitcoin’s recent decline also coincides with a significant outflow from spot Bitcoin ETFs. Over the past two weeks, these ETFs have witnessed withdrawals totaling approximately $3.87 billion. The single largest outflow occurred on February 25, with $1.14 billion exiting the market. On March 6 alone, spot Bitcoin ETFs saw $134.3 million in outflows, largely attributed to concerns over Trump’s Bitcoin reserve plan.
Crypto analytics firm Alva commented, “Investors are jittery about decentralization. Major players like Fidelity’s FBTC and ARK’s ARKB are seeing substantial withdrawals, signaling broader market concerns.”
Key Technical Levels for Bitcoin
Bitcoin’s price action now hinges on a crucial technical support level. The 200-day exponential moving average (EMA) at $85,550 serves as a key threshold. A sustained hold above this level could see BTC recover toward the $92,800-$94,000 resistance zone, with potential to reclaim the psychological $100,000 mark. However, a daily close below the 200-day EMA may result in a deeper correction toward the $81,500-$78,200 range.
Also Read: Trump Creates U.S. Strategic Bitcoin Reserve
As market participants await further developments, all eyes remain on Bitcoin’s ability to stabilize amid ongoing volatility.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
