- Bitcoin rises from a 101k low yesterday to above 105k
- Trump signs the first executive order on crypto
- It established a Presidential working group on digital asset markets
- This could be a step closer to a strategic Bitcoin reserve
- Where next for BTC/USD?
Bitcoin is rising for a second straight day, recovering from 101k yesterday and pushing above 105K on Friday. The rise follows President Trump signing a keenly awaited executive order to promote the advancement of cryptocurrencies in the US. The order has fueled speculation that a national digital asset stockpile could be in the pipeline.
It’s not just Bitcoin that's on the rise; other crypto assets are also moving higher, lifting the overall crypto market valuation to $3.6 trillion. Ethereum climbed to $3400, while Solana rose to $265.
What Is in Trump’s Crypto Executive Order?
Trump’s first crypto executive order is titled “Strengthening American Leadership in Digital Financial Technology.” It will create a crypto working group responsible for proposing a Federal regulatory framework for the issuance and operation of cryptocurrencies.
Most of the order focuses on establishing technology and rules around crypto and its development in the U.S. The Presidential working group will be tasked with exploring a national digital asset stockpile, fueling the speculation of a potential Bitcoin national reserve.
Will Trump Create a Strategic Bitcoin National Reserve?
Trump first floated the idea of a Bitcoin national reserve on the campaign trail. Optimism surrounding its creation, along with more crypto-friendly regulation, helped drive over 50% gains in Bitcoin in just over two months.
Trump has given the task force until July to submit a report addressing the criteria for a stockpile, which could be derived from cryptocurrencies lawfully seized by the Federal Government.
Historically, the US has auctioned off seized Bitcoin and other cryptocurrencies, which has often pressurised the price owing to the increased supply in the market.
When campaigning, Trump pledged that his administration would ensure the Federal government never sold off its bitcoin holdings.
Arkham data shows that the US Government holds $21 billion in seized digital assets, mainly Bitcoin, with over 198k BTC in its wallets.
This latest development brings the prospect of a Bitcoin strategic reserve closer to reality. A strategic Bitcoin reserve would add legitimacy to the crypto market. It would likely encourage other countries to follow suit, lifting demand and raising concerns over scarcity, propelling the BTC price higher.
What's Ahead for Bitcoin?
BTC/USD reached an ATH of 109.5k on Monday before rebounding lower to 102k on the same day. The price has consolidated around the 105k level this week and has respected support at 100k.
The RSI is at 60, above the 50 neutral level and points higher suggesting that bullish momentum is increasing, supporting further upside.
Buyers will look to rise above 109k to new record highs. With blue skies above 125k could be the next logical target.
Meanwhile, if the key support of 100k is broken, sellers could look towards 90k.
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