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Bitcoin The world’s biggest cryptocurrency price volatility fell on Monday after creating a strategic Bitcoin reserve for the US following an executive order signed by President Donald Trump.
Bitcoin fell more than 5% at $81,712, down over 5%, but its previous low was trading at 9:42am, according to Coin Metrics.
The reserve will be funded by coins seized in criminal and civil forfeiture cases, with no plans for the US government to buy more Bitcoin. Crypto prices fell as investors were disappointed after the announcement of the strategic reserve last Thursday.
Other cryptocurrency prices also fell on Monday. both ether and XRP It fell by about 7.5% around 9:43am in Singapore.
However, some investors said the move to establish a reserve is bullish in the long term.
Matt Hougan, chief investment officer at Bitwise Asset Management, told CNBC’s “Squawk Box Asia” on Monday. “The market is disappointing in the short term,” he added, the government said it would not immediately start getting 100,000 or 200,000 bitcoin.
Hougan pointed out comments on the X of White House Crypto and Ai Czar David Sacks. He says the US is “looking for a budget-neutral strategy to acquire additional Bitcoin.”
“The right question is, do you think this executive order has made Bitcoin more likely to become a geopolitical currency or asset in the future?
“The reason the question is important is the question of whether Bitcoin is $80,000 per coin or $1 million in coin.”
Hougan called the decline in crypto prices a “short-term setback.”
“The market will soon find its foothold and realize that in fact this is a very bullish long term for this asset and the crypto as a whole,” he said.
