Although the cryptocurrency market has stabilized after Monday's sell-off, it is still too early to dismiss sellers.
In Washington and the crypto market, many questions arise about how exactly the Trump administration plans to implement the president's initiative to create a strategic cryptocurrency reserve. Discussions surrounding this reserve were the primary driver behind the recent surge in the crypto market.
Following Trump's statements, one thing became clear: the U.S. must acquire three tokens to include in the reserve, meaning Bitcoin alone will not be sufficient. This has triggered an adverse reaction among supporters and critics of the idea that the government should invest in digital assets.
Last year, when Trump first announced plans for a Bitcoin reserve, he stated that it would be based on cryptocurrency already owned by the government—mainly assets confiscated in criminal cases. Currently, the U.S. holds around $16.4 billion worth of Bitcoin and about $400 million worth of seven other tokens. However, none of the cryptocurrencies known as XRP, SOL, and ADA—which Trump mentioned on Sunday as assets he wants to include in the reserve—are currently stored in government-controlled wallets.
Aside from the $16 billion worth of Bitcoin, the U.S. also holds small amounts of ETH and other tokens. However, experts say none of the three additional tokens are suitable for a strategic reserve.
This suggests that the strategic reserve's ambitions extend beyond simply maintaining federal assets and could also involve taxpayer-funded purchases or acquisitions financed by other government assets, sparking criticism within the crypto community.
This explains why the value of the cryptocurrency tokens Trump wants to include in the reserve has dropped sharply recently, wiping out most of the short-term gains that followed his initial announcements.
This highlights the complexity of the U.S. strategic reserve plan and the market manipulations by major players, which often lead to losses for speculators rather than profits.
Bitcoin Technical Outlook
Buyers are aiming for a return to the $87,800 level, which would open a direct path to $89,900, bringing BTC within reach of $91,300. The ultimate target would be the $93,000 resistance zone, a breakout above which would signal a return to a medium-term bull market.
Buyers are expected to step in at $85,600 in the event of a Bitcoin decline. If BTC drops below this level, a rapid fall toward $83,500 could follow. The final downside target would be the $81,400 area.
Ethereum Technical Outlook
A confirmed breakout above $2,222 would clear the way for ETH to reach $2,299. The ultimate target is the annual high of $2,395. Surpassing this level would signal a return to a medium-term bull market.
If Ethereum declines, buyers are expected to enter at $2,138. A drop below this area could send ETH quickly toward $2,055, with the final downside target at $1,974.
