US Bitcoin reserve disappoints traders, causing volatility and futures to drop

From Cointelegraph

March 7, 2025 1:47:21 pm:

Bitcoin’s volatility peaks as Trump’s order to create a US Bitcoin reserve disappoints traders. The executive order focuses on using confiscated tokens instead of new purchases with federal funds, leading to uncertainty and a muted market response. Bitcoin spot price drops 2% and futures prices recoil post-announcement.

Trump signs executive order to establish a Strategic Bitcoin Reserve and US Digital Asset Stockpile, not instructing the federal government to buy Bitcoin. Market reacts with disappointment, lacking understanding of constitutional powers. Initial assets will come from law enforcement and legal proceedings, with no acquisition of other cryptocurrencies by the government.

Traders’ response to the executive order is subdued as Bitcoin spot price falls 2% and average true range (ATR) hits over 5,000 for the first time this cycle. Bitcoin futures on the CME decline by 2% across the forward curve, with July 2025 futures dropping over 4%. Long-term effects depend on reserve size and management, potentially impacting prices significantly.

Read more at Cointelegraph: US Bitcoin reserve ups volatility, futures recoil