- President Trump’s Bitcoin reserve order, likened to gold, hasn’t lifted BTC past $85K despite federal backing.
- Inflation, rate hikes, and layoffs drove BTC from $99K to $77K, prompting investor sales for liquidity.
President Donald Trump’s March 2025 executive order authorizing a federal Bitcoin reserve has not yet propelled the cryptocurrency’s price beyond $85,000. The policy, announced during the inaugural White House Crypto Summit, marked a formal U.S. endorsement of Bitcoin as a reserve asset comparable to gold.
Despite this, Bitcoin’s value has remained range-bound between $77,000 and $84,000 since early March, contrasting with its peak of $109,000 in January 2025.
Between February and March 2025, Bitcoin fell from $99,000 to $77,000 amid rising inflation, interest rate hikes, and corporate layoffs. Investors facing liquidity constraints have reduced exposure to Bitcoin, despite its perceived long-term utility.
ETHNews analysts note that profit-taking by early buyers—many of whom entered when Bitcoin traded near $53,000 in late 2024—has compounded selling pressure.
The U.S. Bitcoin reserve, which holds coins acquired through seizures and purchases, aims to bolster long-term scarcity by keeping government-owned supply off markets. This contrasts with past sell-offs by governments that disrupted prices.
Other nations, including China, the UK, and El Salvador, also hold Bitcoin reserves, while Russia now uses Bitcoin and Tether to facilitate oil trades, circumventing sanctions.
Institutional adoption continues to expand. Asset managers Fidelity and BlackRock have increased Bitcoin allocations in client portfolios, with BlackRock adding its Bitcoin ETF to a flagship investment model. CEO Larry Fink recently suggested institutions may soon dedicate 2-5% of holdings to Bitcoin, citing its role in hedging against currency risks.
The Lightning Network, a layer-2 Bitcoin protocol, processed more transactions in 2024 than any prior year, aided by upgrades that replaced smaller payment channels with larger, more efficient ones. The network now settles most transfers in under a second with near-zero fees.
While short-term economic headwinds persist, proponents argue Bitcoin’s fundamentals remain intact. The U.S. reserve initiative, global institutional adoption, and infrastructure upgrades position Bitcoin as a growing component of sovereign and corporate financial strategies.
However, its immediate trajectory remains tied to macroeconomic conditions, with investors balancing caution against long-term optimism.
