**Bitcoin Takes a Hit: 11% Drop Following Trump’s Executive Order on Strategic Reserve; “Fort Nakamoto” to Safeguard 200,000 Seized BTC; Lutnick Explores Private Funding Strategies for Accumulation**
Samson Mow recently shared insights on the notable decline in Bitcoin’s value after the U.S. announced the creation of the Strategic Bitcoin Reserve (SBR). In a social media update, Mow examined the reasons behind this downturn, which followed former President Donald Trump’s executive order to establish the SBR last Thursday.
Between Friday and Sunday, Bitcoin’s price plummeted by 11.28%, falling from $90,470 to $80,270. Although there was a brief recovery of over 4% on Sunday, this was short-lived, with prices reverting back to $80,270 by Monday.
Mow pointed out several factors contributing to this price drop, noting that declines often occur when “people are willing to sell BTC for cheaper and cheaper.” Key influences include market sentiment, unexpected global events, automated sell-offs triggered by specific price points, and traders reacting to news-driven excitement. He referred to the SBR as a “complete game-changer,” likening it to “Fort Nakamoto,” a playful nod to Fort Knox, the U.S. gold depository. The U.S. government currently possesses around 200,000 Bitcoin, seized from criminal activities over the last decade, with an audit set to confirm the exact amount held in the SBR.
Howard Lutnick, the U.S. Secretary of Commerce, is responsible for finding ways to increase these holdings without relying on public funds. Notably, the SBR will exclusively contain Bitcoin, while other cryptocurrencies like Cardano (ADA), Solana (SOL), XRP, and Ethereum (ETH) will be stored in a separate national reserve. Mow speculates that if the SBR proves successful, other nations may follow suit in accumulating Bitcoin.
Despite the recent price drop, Mow reaffirmed Bitcoin’s status as a long-term reserve asset. He highlighted that market reactions to policy announcements often lead to short-term volatility, exemplified by the “sell the news” phenomenon, where traders exit their positions after anticipated events unfold. The U.S. government’s approach to Bitcoin stands in contrast to its treatment of other digital assets, emphasizing Bitcoin’s unique regulatory position.
Analysts at ETHNews note that while the establishment of the SBR lends institutional credibility to Bitcoin, its immediate market impact has been overshadowed by broader trading behaviors. Mow’s observations underscore the complex relationship between policy changes and market psychology. As the U.S. solidifies its Bitcoin strategy, the global response and ongoing price trends are likely to influence the asset’s adoption journey. The long-term effects of the SBR will depend on its execution and international collaboration.
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