Investing.com -- Bitcoin experienced a dip on Monday following President Donald Trump’s executive order to establish a strategic bitcoin reserve for the United States. The cryptocurrency’s value slipped by as much as 6.5% before recouping most of its losses, settling around $82,050 during early morning trading in London. Other major cryptocurrencies, including ether and XRP , also experienced volatility but bounced back from initial drops.
This development was interpreted by Nigel Green, CEO of the global financial advisory giant deVere Group, as a pivotal point for digital assets rather than a cause for concern. Green suggests that the market’s reaction displays a lack of foresight which will likely be rectified as investors understand the broader implications of the move.
According to Green, the executive order increases the likelihood of Bitcoin becoming a geopolitically significant asset in the future. He stated that the vision of Bitcoin evolving beyond a speculative asset into a cornerstone of sovereign financial reserves is now being actively realized.
The establishment of a strategic reserve by the US serves to validate Bitcoin’s status in global finance. While some disappointment may stem from the fact that the government is not purchasing additional bitcoin, the more significant development is the formal integration of the asset into the reserves of the world’s largest economy.
Green anticipates that the US will not be the last nation to take this step. Other countries, especially those seeking to hedge against dollar dominance, may now feel motivated to build their own Bitcoin reserves. Countries with a history of accumulating alternative assets, such as gold, might take this as a signal to further diversify into digital assets. This move is likely to be noted by sovereign wealth funds, central banks, and institutional investors.
Green also highlighted that short-term price action rarely mirrors long-term fundamentals. He drew parallels with past events where investors initially reacted with fear or skepticism to significant policy changes, only to later recognize their importance.
The executive order also provides regulatory clarity. Green suggests that a government holding bitcoin in reserve would have a vested interest in ensuring that the asset is viable and shielded from harsh restrictions. This could fast-track the establishment of clearer, more favorable regulations.
Green concluded that Bitcoin has a history of market overreactions. He suggests that the strategic reserve announcement will likely be viewed as a moment of validation for Bitcoin’s role in the financial system once the dust settles.
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