On March 7, Bitcoin fell 5%, below $85,000. At the time of writing, the world’s largest cryptocurrency is $89,524.32, a slightly higher previous state.
Similarly, the MSTR, which many consider to be a proxy for Bitcoin exposure, exceeded the 8% before the market as investors adjust their opinions and now declined 4.12% before the market.
Without visible signs of government purchase, MSTR valuations (heavyly locked against Bitcoin price fluctuations) have begun to sag. Those who were hoping for Bitcoin were forced to take a strong response to Devish’s policy pivot, which was hit and led to sharp sell-offs.
The sale corresponds to President Donald Trump’s executive order creating a national crypto stockpile. The decision was conceived by many to trigger large state-backed Bitcoin purchases that come with potentially billions of tones. Instead, the White House explained that the screen is limited to Bitcoin. Bitcoin was already held by the government as part of previous confiscation and forfeiture of civil assets.
“The government will not acquire additional assets in US digital asset stockpiles beyond what is obtained through confiscation procedures,” reads the White House fact sheet.
Trump’s newly appointed “Crypto Czar” David Sacks said the US could have made around $17 billion if the Biden government didn’t sell previously seized Bitcoin.
“This is the most overwhelming and disappointing result we could have hoped for,” said Charles Edwards, founder of Capriol Investment. Without aggressive purchases, Edwards repeatedly stated that there was no development in his Bitcoin balance and was already present on the government’s balance sheet. Edwards gets annoyed and says, “This is a pig in the lipstick.”
The omission of new purchases illustrates a more cautious approach than many leaders within the crypto community expect.
For example, Jameson Lopp, CASA co-founder and chief security officer, said, “The problem with having a Bitcoin reserve under government control is that political winds will change rules.”