Trump's BTC reserve announcement leads to market decline

Let's briefly review the recent fluctuations over the past few days:

Let's briefly review the recent fluctuations over the past few days:

On March 2 (Beijing time), Trump announced on Truth Social that the U.S. would advance a crypto strategic reserve including BTC, ETH, XRP, SOL, ADA, etc., ensuring that the U.S. becomes the world's crypto capital.

With this sudden news, the market began to rise rapidly. For example, BTC soared from $85,000 to $95,000, ETH rose by 18%, XRP increased by 38%, SOL went up by 29%, and ADA skyrocketed by 80%.

However, this surge did not last long. With the opening of the U.S. stock market on March 3, combined with news about tariffs and other factors, Bitcoin and various altcoins began to experience a rapid decline again. Just about a day later, the market had completely erased all the gains brought by Trump's "strategic reserve" news.

With the expectation of a White House crypto summit on March 8 (Beijing time), the market has been experiencing continuous fluctuations in the past few days. However, today (March 7, Beijing time), news broke that Trump has signed an executive order to formally establish a U.S. strategic Bitcoin reserve. As shown in the image below.

But after this news spread quickly, the market instead entered a rapid decline mode, with Bitcoin dropping 6% within half an hour. As shown in the image below.

Here, we may need to continue thinking about a few questions:

Is the recent market's volatility an illusion? Or are whales deliberately manipulating the market and buying at low prices?

The U.S. has granted Bitcoin a national reserve status similar to gold, which will certainly enhance Bitcoin's legitimacy and value support in the long run. But why is the market reacting with a rapid decline?

Next, we will continue to discuss this topic based on our previous articles:

1. About Bitcoin's Strategic Reserve

To be honest, a few years ago, I never dared to imagine that Bitcoin could be included in the U.S. strategic reserve. At that time, I only thought that if Bitcoin could be approved for a spot ETF, it would be a significant milestone.

However, since Trump's election victory, we have mentioned in previous articles that the U.S. crypto strategic reserve has become a matter of when, not if.

From a long-term perspective, the fact that the world's most developed and influential countries can include Bitcoin in their strategic reserves is equivalent to granting Bitcoin a national reserve status similar to gold (although the current U.S. gold reserves have lost their original significance). This will certainly enhance Bitcoin's legitimacy and value support, and it is also beneficial for the better development of the crypto industry (rather than complete unwild development; of course, good development, from a certain perspective, also means that opportunities for ordinary people to get rich will become fewer or more difficult).

Of course, you can also view the U.S. Bitcoin strategic reserve as a new conspiracy or scam; I do not refute that, as everyone can have different perspectives on issues.

But from a short-term speculative perspective, the news today that Trump has officially signed an executive order to establish a Bitcoin strategic reserve may lead to a rapid market decline due to several possible reasons:

A common saying in the investment field is that good news landing can be bad news. Today's news can be understood as a landing of the U.S. Bitcoin strategic reserve, which may lead to some speculative selling.

Many people expected that once the Bitcoin strategic reserve was established, the Trump administration might use fiscal funds to buy more Bitcoin. However, from today's news, the executive order signed by Trump mainly mentioned that the source of Bitcoin reserve funds is limited to confiscated assets and will not increase the burden on taxpayers. This was directly interpreted as the Trump administration not planning to inject new funds to purchase Bitcoin.

Although the public message also mentioned that "the Treasury and Commerce Departments can formulate plans to acquire more Bitcoin without increasing the taxpayer burden," it still could not prevent people's disappointment. The greater the expectation, the greater the disappointment.

Of course, the above are just some relatively intuitive reasons. Market declines are often determined by a combination of factors, such as the three core aspects of narrative, economy, and policy that we mentioned in previous articles. Short-term market trends are more of a direct reflection of people's emotions influenced by news.

Since there is also a White House crypto summit tomorrow (March 8, Beijing time), we do not know what new policy-related news may emerge then, which will also have an immediate impact on the short-term market, so we should continue to pay attention.

However, if we take a long-term view, with the implementation and advancement of the U.S. crypto strategic reserve