After the historic US Bitcoin Strategic Reserve announcement, the price dumped. It's odd. The global race to acquire a piece of the 21 million bitcoin pie is on. For years, a top concern was governments banning it, now they are supporting, holding, and (likely) acquiring it. So what's up with the price action?
I think there's two things going on
here.
First, the Executive Order says, "the Secretaries of Treasury and Commerce are authorized to develop budget-neutral strategies for acquiring additional bitcoin." It didn't outright say they were going to buy a million coins per the Lummis Bill. Some people were disappointed and saw this as a "sell the news" event.
Second, and perhaps more significantly, is the uncertainty
in the current US economic policy creating recession fears. From tariffs to fiscal cuts, it appears the administration is focused on Main Street over Wall Street with the goal to get interest rates down.
But, I think there's light at the end of the tunnel as the tightening in liquidity appears to be reversing.