Why Bitcoin hasn’t (yet) taken off despite promises of superpower status
The past few weeks have been bumpy for Bitcoin and the entire crypto market. After reaching an annual high of around $109,000 shortly after Donald Trump took office at the end of January, the price temporarily fell to just under $77,000 – a yearly low. Bitcoin is currently trading at around $87,000, down about seven percent since the beginning of the year.
Analyst Marcel Heinrichsmeier of DZ Bank sees the causes of the weak phase in macroeconomic uncertainties. Trump’s aggressive tariff policy and the unclear monetary policy situation are weighing on the risk appetite of many investors. Even though the crypto-specific news situation has calmed down recently, many are pinning their hopes on fresh impetus.
A potential game changer has already been initiated: a few weeks ago, President Donald Trump signed an executive order establishing strategic reserves in Bitcoin and other digital assets. The reserve will initially consist of confiscated holdings – around 200,000 Bitcoins, according to estimates. According to the order, the Treasury and Commerce departments are also permitted to develop strategies to acquire additional Bitcoins in a budget-neutral manner – at no additional cost to taxpayers.
“The market had hoped for significantly more from the announcement,” explains Heinrichsmeier. Many investors assumed that the US government would actively participate in the market – but these hopes were dashed. The executive order and the crypto summit held shortly thereafter at the White House developed into a classic “sell the news” moment.
Nevertheless, the structural signaling effect should not be underestimated. “Trump made it clear in his preface to the Digital Assets Summit that he wants to make the US a Bitcoin superpower,” said Heinrichsmeier. Stablecoins are also to be used strategically to secure the dominance of the US dollar in global payments.
Bo Hines, Executive Director of the Crypto Advisory Council, spoke at the event of a potential race between states for Bitcoin reserves. “The US wants as many Bitcoins as possible,” he said.
At the same time, several US states are pursuing legislative initiatives to build their own Bitcoin reserves. Texas could take a leading role in this area. If such projects are successfully implemented, this could spark new buying momentum, according to Heinrichsmeier.
Despite short-term weakness, Heinrichsmeier sees structural stabilizers in the medium term: Geopolitical importance is increasing, political signals are intensifying – and the regulatory situation is also brightening. Several proceedings by the US Securities and Exchange Commission (SEC) against crypto companies have been dropped under the new leadership.
“Bitcoin remains under pressure, but the foundation for the next upswing may already be laid,” concludes the DZ Bank analyst. The decisive factor now is whether the announced state measures also result in market purchases – and whether states like Texas actually implement their Bitcoin plans.
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