Despite President Trump’s groundbreaking Executive Order establishing a strategic bitcoin reserve, the price of bitcoin has failed to surpass $85K.

On March 7, President Trump hosted the first ever White House Crypto Summit . At the event, Gemini co-founder Tyler Winklevoss said , “The U.S. should win crypto.”

Everything appears to be ideal. The Trump administration is strongly pro-crypto, and we are experiencing the most favorable regulatory environment in U.S. history.

Instead, Bitcoin has hit a standstill. Why isn’t it surging, and what’s at stake?

Economic pressures trigger sell-off

The overall economy still plays a significant role. In February 2025, Bitcoin was at $99K, but by March 10, it had dropped to $77K — its lowest point. Since then, it has bounced back to around $84K , holding steady.

The drop isn’t because of regulatory issues but more due to more considerable economic factors.

Things like tariffs, inflation, rising interest rates, and job layoffs make investors more cautious. When money gets tight, investors who need cash tend to sell risky assets like Bitcoin, even though it has strong long-term potential. High-volatility assets are usually the first to go when cash flow shrinks.

Bitcoin as a Risk Asset: Short-Term Volatility

ARK Invest, an investment management firm known for investing in more volatile assets aptly stated , “The market for Bitcoin is subject to rapid changes and uncertainty.”

Bitcoin is being used more as a store of value, but it still acts like a risky asset when the economy is shaky.

Its big jump from $53K in September 2024 to $109K in January 2025 means many early investors are cashing out profits, adding to short-term selling pressure.

The creation of the U.S. Bitcoin Reserve marks a significant shift in government policy. It officially recognizes Bitcoin as a store of value, like digital gold.

Unlike past government sell-offs that hurt the market, this reserve keeps those holdings off the table. While the market reaction has been quiet so far, this move will greatly impact Bitcoin’s scarcity and future adoption.

Bitcoin is becoming the new global standard in trade and finance

On the international stage, nations are actively accumulating bitcoin seeing it as an important part of global finance and trade.

The U.S ., China , the UK , Ukraine , North Korea , Bhutan , and El Salvador all hold Bitcoin in different ways, whether through asset seizures or strategic buying.

Meanwhile, Russia is using Bitcoin, Ethereum, and USDT to trade oil, getting around Western sanctions by converting yuan and rupees into crypto.

As Bitcoin plays a bigger role in the world economy, it's crucial for the U.S. to hold a large amount to stay competitive. If the U.S. falls behind, other countries could gain the upper hand in trade and finance, weakening America's influence in the digital financial system.

Big investors are all in on Bitcoin: Fidelity and BlackRock lead the way

Some of the world’s most prominent financial players are doubling down on Bitcoin.

In 2024, more businesses integrated the Lightning Network than ever before, and the trend is set to grow in 2025.

The network is evolving, with smaller, inefficient channels closing in favor of larger, more efficient ones. As a result, the Lightning Network is now handling more transactions with better reliability and almost zero fees, settling payments in less than half a second, making it the fastest way to move digital assets.

Simultaneously, BlackRock CEO Larry Fink, a strong bitcoin supporter, recently suggested that institutional investors may soon allocate 2% to 5% of their portfolios to Bitcoin. At the World Economic Forum, Fink pointed out that Bitcoin is becoming a key hedge against currency devaluation and geopolitical uncertainty.

BlackRock also added its Bitcoin ETF to its model portfolio .

Bullish long-term, cautious short-term

Bitcoin’s recent stagnation is not a sign of weakness but rather a temporary recalibration amid economic turbulence.

The pro-crypto administration, increasing global adoption, and the Strategic Bitcoin Reserve all set the stage for long-term appreciation.

The growing adoption of the Lightning Network and ever-increasing institutional interest suggest Bitcoin’s role in the financial ecosystem is solidifying.

While short-term volatility persists, the fundamental narrative remains intact: bitcoin is becoming a sovereign asset, and those with a long-term perspective will be the ultimate beneficiaries.

Disclaimer : The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the views of TheStreet Crypto. This piece is for informational purposes only and should not be considered financial or investment advice.