## Bitcoin Faces Significant Volatility
Bitcoin saw notable fluctuations early Friday, dropping from approximately $90,000 to a low of $84,875 before bouncing back to $86,656. This decline followed a significant announcement from U.S. President Donald Trump, who signed an executive order on March 7, 2025, to create a strategic Bitcoin reserve. According to the order, this reserve will comprise Bitcoin assets seized in criminal and civil cases, which will be retained indefinitely and not sold. Additionally, there are ongoing discussions about transferring Bitcoin held by various federal agencies into this new national reserve. Trump also called for the establishment of a separate vault for confiscated digital assets that are not related to Bitcoin, with liquidation of these assets permitted only under exceptional circumstances as determined by the Treasury Department.
## Factors Behind Bitcoin’s Sudden Decline
The sharp drop in Bitcoin’s value can be attributed to several factors. Initially, the market reacted negatively upon realizing that the U.S. government would not be actively buying Bitcoin but would only hold seized assets. Moreover, Trump’s executive order requires Congressional approval, a process that could take months. This uncertainty led to a classic ‘sell the news’ response, resulting in a significant sell-off. The management of Bitcoin as a strategic reserve asset also raises important concerns regarding security, regulatory oversight, and storage solutions. Unlike traditional reserves like gold or oil, Bitcoin necessitates highly secure digital storage, which heightens the risk of cyber threats and presents logistical challenges in maintaining a national Bitcoin reserve.
## Optimism Amidst Market Turbulence
Despite the market’s ups and downs, prominent Bitcoin advocate Max Keiser remains very optimistic. “I predict we cross $100,000 in the next few hours and $120,000 this month,” he tweeted on Friday. Keiser, a well-known Bitcoin maximalist and advisor to El Salvador’s President Nayib Bukele, has consistently promoted Bitcoin as “digital gold” and a safeguard against inflation. His faith in Bitcoin’s potential has never wavered. In December 2024, he made an even bolder prediction, suggesting that Bitcoin could eventually reach $2.2 million per coin, a tenfold increase from his earlier target of $220,000.
## A Balanced Perspective on Bitcoin’s Future
In contrast, Swan Bitcoin CEO Corey Klippsten offered a more cautious viewpoint, indicating that Bitcoin has a 50% chance of exceeding its all-time high of $109,000 by June. He stressed that traders need time to process macroeconomic factors such as Trump’s proposed tariffs, trade tensions, and inflation risks. “Bitcoin trading below $100,000 feels more like a pause than an end to the bull run,” Klippsten remarked. Meanwhile, CryptoQuant analyst Ja Maartunn pointed out the potential long-term bullish implications of the U.S. holding Bitcoin as a reserve asset. “If the U.S. follows through with this, it could be a major bullish development for Bitcoin,” he noted. Currently, the U.S. government holds approximately 188,898 BTC, valued at around $18.14 billion, and securing these assets remains a priority.
