The recently released White House Digital Assets Report confirms that Bitcoin will be included in the U.S. Treasury's strategy. Meanwhile, its price is experiencing a sharp decline. In this article, we explore the reasons behind this phenomenon.
U.S. Treasury to Manage Bitcoin Reserve
The report dramatically confirms that the world's largest cryptocurrency will be managed by the U.S. Treasury. Key points include:
* The Treasury Secretary will manage the official Bitcoin reserve. * The initial reserve will consist of seized coins, with plans to accumulate more. * The held BTC "will generally not be sold". * The Federal Reserve is banned from launching a CBDC (central bank digital currency). * Banks must serve crypto clients without regulatory discrimination.
Reasons for Bitcoin's Decline
Despite the positive news about the reserve, Bitcoin's price is dropping. The main reasons are:
* **Whale Profit-Taking:** Investors may have priced in this policy shift news beforehand, and upon its public announcement, whales began to exit their positions, triggering a short-term drop. * **Late Retail Investor FOMO:** Retail traders rushed in after the policy news while whales used this opportunity to offload—a classic distribution top. * **Technical Indicators:** MACD shows a bearish crossover, while the RSI is neutral but declining from earlier highs, suggesting potential further losses.
Bitcoin Price Prediction
Price predictions for the near future:
* **Short-Term:** $115K–$112K (sell-the-news dip and consolidation). * **Mid-Term:** $121K–$130K (recovery as treasury reserve impact grows). * **Long-Term:** $180K–$220K (final bullish rally before possible major correction).
Some traders remain cautious, warning of a potential exit zone.
Despite positive news about Bitcoin becoming part of the U.S. financial infrastructure, its price continues to dip. This is due to the actions of large investors and their strategies in the market. Over the long term, Bitcoin's legitimacy is expected to increase.
