Trump Bitcoin Reserve Announcement Fails to Boost BTC Price as it Drops 2.5
1min read Former U.S. President Donald Trump recently declared that the U.S. government would never sell its Bitcoin holdings, a statement that has sparked significant discussion within the cryptocurrency community. This announcement came during the White House Crypto Summit, where Trump and his crypto advisor David Sacks revealed that the U.S. holds 200,000 btc under a new Strategic Bitcoin Reserve. This move signals a major shift in U.S. policy, positioning Bitcoin as a long-term asset rather than an asset to be sold for short-term gains.
Despite the optimism surrounding Trump's support for Bitcoin, the market has shown a muted reaction. Bitcoin struggled to maintain its bullish momentum, dropping below $87,000, even after Trump's declaration. As of the latest update, BTC is trading at $86,060, marking a 2.5% decline over the past 24 hours. This dip follows Bitcoin’s brief surge to $94,000 earlier in the week, where it failed to sustain gains.
One of the factors contributing to Bitcoin’s decline is the selling pressure from large BTC holders, including whales and institutions, who have been offloading BTC on Binance. This selling pressure has added downward momentum to the market, as these investors capitalize on price rallies. According to CryptoQuant analyst Crazzyblockk, this trend has been accelerating, further weighing on Bitcoin’s price.
While Trump’s support is seen as positive for Bitcoin’s long-term outlook, the immediate reaction has been cautious. Traders remain wary of future regulations and profit-taking risks, which has limited the bullish momentum. The market is closely watching regulatory developments and whale activity, as these factors could significantly impact Bitcoin’s price trajectory.
Technically, Bitcoin is consolidating within a symmetrical triangle on the 2-hour chart, currently trading near $86,060. Key technical levels indicate that support is at $86,910, and a break below this level could push BTC to $84,750 and $81,460. The 50-period EMA at $87,930 is acting as a resistance zone, and a break above $89,170 is needed to regain bullish momentum toward $92,840 and $95,110.
With weaker 