Bitcoin fell sharply today, down 6.5%, as market volatility continues following President Donald Trump’s executive order establishing a strategic Bitcoin reserve for the United States. Earlier in the day, the world’s largest cryptocurrency was down as much as 4.5% to trade around $78,650. The decline follows investor reactions to the reserve announcement, which stated that the U.S. government would fund the reserve using BTC seized in criminal and civil forfeiture cases. Notably, the government has no plans to directly purchase additional BTC. Following the announcement last Thursday, crypto markets reacted negatively, with some investors disappointed by the lack of a more aggressive savings strategy, but some analysts remain optimistic about the long-term impact of the reserve. “I think the market is absolutely wrong on this one,” Matt Hougan, chief investment officer at Bitwise Asset Management, said during an interview on CNBC’s Squawk Box Asia. “The market is experiencing short-term disappointment that the government did not immediately buy a significant amount of Bitcoin, say 100,000 or 200,000.” Related News: Unusual Bitcoin (BTC) Proposal to Trump from a Name Known to be Close to Trump Hougan pointed to statements by White House Crypto and AI Chief David Sacks on X, who stated that the US government would explore “budget-neutral strategies to acquire additional Bitcoin, provided that there is no additional cost to American taxpayers.” “I think the right question to ask is: Has this executive order increased the likelihood of BTC becoming a geopolitically significant currency or asset in the future? Will other governments follow in the footsteps of the US and seek to build their own strategic reserves? I think the answer is a definite yes,” he said. Emphasizing that this development could be very important in determining the long-term valuation of Bitcoin, Hougan suggested that such moves could increase the BTC price from $80,000 to $1 million per coin. Despite the short-term price drop, Hougan remains confident in Bitcoin’s long-term prospects. “I think the market will soon find its feet and realize that this is actually incredibly bullish for this asset and crypto as a whole over the long term,” Hougan concluded. *This is not investment advice. Continue Reading: Bitwise Official Says “The Market Is Absolutely Wrong” About The Decline, Shares His Bullish Scenario
