How ‘Feasibility’ Led to a $91.7 Billion Freefall

It’s said a picture tells a thousand words.

Well, what about this picture?

This is the Bitcoin price chart over roughly a 15-hour time frame.

Things were going along just fine; we were back over $100,000 and some solid footing was on the cards.

Then there was an announcement last night that there would be a press conference with Crypto and AI ‘Czar’ David Sacks, along with Senator Tim Scott, Representative French Hill, Senator John Boozman, and Representative GT Thompson, to unveil new plans for U.S. leadership in digital assets.

Of course this had the Bitcoin market in a tizz.

There were dreams of announcements of Bitcoin buys underway, that a strategic reserve would have been officially green-lit. And that the Trump administration would be going full laser-eyed Bitcoin maximalists, pumping Bitcoin’s price into the stratosphere.

And then the press conference started…

Over-Expecting and Always Ready for Disappointment

Expectations for these kinds of press conferences are always higher than what’s delivered. Always.

And the subsequent disappointment in the aftermath is seen most evidently in things like price charts, as shown earlier.

So, what exactly was it about Sack’s press conference that spooked the market so much, sending the market cap of Bitcoin around $91.7 billion lower in the space of a couple of hours?

It all boils down to these statements from Sacks in the press conference and in an interview with CNBC. First, the press conference,

‘One of the things that the President instructed us to do was evaluate the idea of a Strategic Bitcoin Reserve. That's one of the first things we're going to look at as part of the internal working group of the administration… the feasibility of a Bitcoin Reserve.’[1]

In the CNBC interview he said,

‘The item that President Trump asked our working group on digital assets to study is whether it’s feasible to create either a Bitcoin reserve or some sort of digital assets stockpile. So, we’re going to be looking at that question. We haven’t committed yet to doing it, but it’s going to be one of the first things we’re going to be looking at.’[2]

This is all very noncommittal. And ‘feasibility’ suggests a chance it might not happen.

Or at least the market sees it that way.

I don’t.

I see this as a massively bullish outcome for Bitcoin. 

Patience is the Only Way to Success

Sacks is non-committal because you can’t decorate a house without a floor, walls and a roof.

That’s where the U.S. is at with a strategic reserve. The framework isn’t in place, the rules aren’t there, there’s no point launching into all this without there being firm and clear outcomes and objectives.

None of this happens overnight. It requires ‘study’ and evaluation of ‘feasibility.’ But also, don’t forget that you’ve got Sacks at the helm, Trump as President, JD Vance as VP, and a long roster of pro Bitcoin, pro crypto people in this administration that will make this happen.

That’s why the market is wrong on this one. Patience is something the crypto market never had, but if you have it, long term it’s one of the most powerful tools you’ll have to be successful investing in crypto.

Trust in crypto,
Adam Atlantic

P.S. Sacks was also asked about the incoming Sovereign Wealth Fund to which he said, ‘The concept of the Sovereign Wealth fund is a little separate, and you’ll have to talk to Secretary Lutnick, soon to be Secretary Lutnick, about that.’

He then followed up in the CNBC interview with, ‘The sovereign wealth fund could decide if they want to make Bitcoin or digital assets part of its portfolio. You’ll have to ask incoming commerce secretary about that.’

Tomorrow, that’s exactly what we’ll look at. What is the Sovereign Wealth Fund and why could it be adding billions worth of Bitcoin, crypto and crypto stocks to its coffers…

[1] https://x.com/AutismCapital/status/1886870419891949862

[2] https://x.com/Vivek4real_/status/1886913136378159147