Bitcoin fails to grow stronger after dropping past $89,000 due to negative market reaction toward Donald Trump’s initiative to create a Strategic Bitcoin Reserve. The initial market response to the plan was excitement but interest disappeared due to questions about how to make it work.

The news about bitcoin first increased its value until investors lost confidence which dropped the price 3% to $87,590 before settling at $84,690. The executive order creates cryptocurrency reserves through seized criminal funds while rejecting any government buying at this time. 

$BTC $ETH Cryptocurrencies decline as Trump's U.S. bitcoin reserve plan falls short of expectationshttps://t.co/rw7x3ix3Vj

— Ben Lam……. (@BenBSP) March 7, 2025

According to David Sacks, the White House crypto and AI czar, the U.S. government already owns 198,000 BTC valued at $17 billion. Yet he also explained that future crypto purchases must happen without increasing taxes.

Bitcoin’s Next Move Remains Unclear

Although officials provide comfort to the market participants these investors remain wary of potential risks. The use of seized cryptocurrencies instead of new government money creates doubts about whether the reserve will attract institutional investors in the future. Expert opinion remains weak because neither the timing nor the management plans for the U.S. government BTC reserves have been defined.

The crypto market suffers from widespread instability while Trump’s orders also weaken investor belief. JPMorgan analysts expect small increases in Bitcoin value during the next few months because of weak market demand and worsening economic problems. After hitting $90,000 earlier this week Bitcoin struggled to maintain its rise which makes $70,000 more likely if bottom level defenses give way.

The market downturn affects multiple cryptocurrencies including Ethereum which dropped 2%, Solana which declined by 3%, and Cardano that lost 13% of its value today. Legal uncertainty about cryptocurrencies poses a major challenge because Donald Trump’s crypto-friendly position has not produced specific rules yet. Market participants are waiting for the White House Crypto Summit to learn new sector policies that may boost investor confidence.

Bitcoin Struggles To Break Resistance

Several technical tools show Bitcoin forming a symmetrical triangle during its consolidation phase which indicates that its price movement might become more unpredictable soon. Market participants monitor the price action at $88,657 because the 50-day exponential moving average stands as important support. 

When BTC maintains strength above $91,700 its next target is $95,100 but if the price falls below $86,900 it will face more market downturn with potential bottom support around $84,750.

The digital currency maintains limited success in surpassing the 50-period Exponential Moving Average after major drop periods. Market behavior in the next months will depend mostly on how prices perform between $86,910 and $84,751. Bitcoin needs to stay above these support points for the market to avoid suffering new price drops.

The Strategic Bitcoin Reserve needs favorable execution alongside market conditions and regulatory changes to achieve success under President Trump. Bitcoin continues to face extreme price movements because organizations and authorities have not yet defined clear rules about this asset. Market participants track Bitcoin movements as they await signs of a price breakout or a continued downward trend between $91,740 and $86,910.