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Donald Trump has signed the first crypto executive order, but the market’s response has been far from what many anticipated. Over the past year, there has been significant speculation surrounding the Lummis Bill and the proposed Strategic Bitcoin Reserve (SBR), leading many to expect Trump to confirm the SBR through an executive order. However, this was not the case. Instead, Trump signed an order to create a national digital asset stockpile.
While it’s reasonable to assume this stockpile will include Bitcoin, the order also leaves the door open for other cryptocurrencies to be held, expanding its scope and influence.
Pro-Crypto Measures in the Executive Order
Pro-Crypto Measures in the Executive Order
This executive order is a significant step forward for the cryptocurrency space, with the following key details:
Presidential Working Group on Digital Asset Markets:
A new body is established to strengthen U.S. leadership in digital finance. Its focus includes creating a federal regulatory framework for digital assets, including stablecoins, and exploring a national digital assets stockpile.
Leadership & Expertise:
The group will be chaired by the White House AI & Crypto Czar, David Sacks, and involve top officials such as the Treasury Secretary and SEC Chair. External digital asset experts will also contribute to ensure robust, informed policymaking.
Regulatory Evaluation:
Federal departments and agencies must identify outdated or restrictive regulations impacting digital assets, providing recommendations for updates or rescissions.
CBDC Restriction:
Agencies are prohibited from establishing or promoting Central Bank Digital Currencies (CBDCs) under this order.
Overturning Previous Policies:
It revokes the previous administration's Digital Assets Executive Order and the Treasury's restrictive framework, seen as barriers to innovation and global competitiveness.
Market Reaction: Short-Term Volatility and FUD
Market Reaction: Short-Term Volatility and FUD
Despite its pro-crypto stance, the market reacted poorly to the news. This reaction stems from expectations that the SBR would be announced shortly after Trump took office. Instead, the executive order focuses on “exploring a national digital assets stockpile” rather than confirming its creation, leaving room for fear, uncertainty, and doubt (FUD) around the SBR.
Markets are often impatient and irrational. This, combined with the "sell the news" behaviour, has contributed to short-term volatility following the signing of the order.
From today, the newly established working group has 180 days to deliver a comprehensive report that will outline future legislative and regulatory proposals regarding the potential SBR and digital asset stockpile.
Long-Term Bullish Implications
Long-Term Bullish Implications
While the short-term market correction might seem disheartening, this executive order should ultimately be viewed as bullish. The 180-day timeline for the working group to refine the framework ensures that the current bull run will likely be prolonged, as anticipation builds for the SBR. The real momentum will begin once the U.S. government starts purchasing Bitcoin, which will drive demand on an unprecedented scale. Until then, this period presents a valuable opportunity to accumulate Bitcoin and add to your altcoin bags in preparation for the next major phase of the market.
Stormrake Spotlight: Trump (TRUMP) ($33.86)
Stormrake Spotlight: Trump (TRUMP) ($33.86)
TRUMP is steadily declining as the hype and buying demand fade. While it’s unlikely to go to zero like 99.99% other meme coins, TRUMP’s time in the spotlight seems to be ending. Nonetheless, it’s expected to remain a significant player in the memecoin space and has even garnered attention through an ETF filing.
BTC/USD Key Levels and Price Action:
BTC/USD Key Levels and Price Action:
Bitcoin broke below its key symmetrical triangle pattern late yesterday and was on track for a push toward $100k. However, BTC then bounced by over 5.5%, creating another lower high overnight while maintaining a higher low in the short term.
Since then, Bitcoin has failed to hold above the critical $104k level, due to the volatility caused by the executive order and the ensuing “sell the news” event.
BTC Total ETF Flows for 23 Jan: $ + 4.1 million
(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)
ETH/USD Key Levels and Price Action:
ETH/USD Key Levels and Price Action:
Ethereum broke below its symmetrical triangle, reaching the critical support level of $3,207 before finding solid support and bouncing by over 4%. Currently, ETH is eyeing the $3,557 level but first needs to overcome both 200-day moving averages – a significant challenge. If it succeeds, we could see momentum shift back to the bulls, potentially forming a bullish structure.
ETH Total ETF Flows for 23 Jan: $ - 22.2 million
(ETF flow data is sourced from https://farside.co.uk/eth/ and reflects figures at the time of writing.)
*All prices are denominated in USD unless stated otherwise*
Written by Alexandar Artis
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