Bitcoin falls below $83,000 as US bitcoin reserve news disappoints

A week ago on Sunday, US President Trump made a mess of the crypto market but tweeting about a crypto reserve including Solana, Ripple and Cardano.

A U.S. Crypto Reserve will elevate this critical industry after years of
corrupt attacks by the Biden Administration, which is why my Executive
Order on Digital Assets directed the Presidential Working Group to move
forward on a Crypto Strategic Reserve that includes XRP, SOL, and ADA. I
will make sure the U.S. is the Crypto Capital of the World. We are
MAKING AMERICA GREAT AGAIN!

Shortly afterwards he added Ethereum and Bitcoin to the list. Throughout the week, everyone was looking for clarity but the White House later said that he just named the five largest-volume cryptos and that a plan was in the works. That led to a week of announcements that culminated in a long-rumored plan to hold cryptos that were already seized by the government rather than selling them.

Late on Friday, Trump signed the executive order and it’s been a ‘sell-the-fact’ trade since, with bitcoin down about $3000 in the aftermath and carving out fresh lows at the moment.

The order kept open the possibility of the government buying bitcoin in future but that may be difficult because it would likely require money from Congress.

The US Commerce and Treasury secretaries “are authorized to develop
budget-neutral strategies for acquiring additional bitcoin, provided
that those strategies impose no incremental costs on American
taxpayers,” a factsheet on the White House website said.

Similarly, cardano has given back nearly all its post-tweet gains and has just fallen below the retracement low on March 4. Solana is at the lowest since late February and XRP is below pre-tweet levels. Ethereum had given back Trump-pump gains the day after the announcement and is threatening the lowest levels since 2023.

The lesson here: The government is exit liquidity not entry liquidity.

This article was written by Adam Button at www.forexlive.com.