On March 7, David Sacks, the White House Cryptocurrency Chief, revealed that Trump has signed an executive order aimed at establishing a strategic BTC reserve and digital asset reserve. This long-awaited milestone of Favourable Information in the market has finally landed. However, once the news was announced, BTC experienced a flash crash, with a big dump of over 6% during the day, showing a typical 'Favourable Information buy the rumor, sell the news' trend.
The market chooses to "vote with its feet" because the main source of BTC reserves is not the specialized financial plan (issuance of bonds) or fiscal appropriations that the market expects, but BTC confiscated through criminal and civil penalties, as well as other BTC obtained through a neutral budget. This result has thwarted the expectation of the government directly entering the market as previously anticipated. Therefore, the fall is essentially a correction of the market's overly high expectations.
In the BTC Strategic Reserve Executive Order signed by Trump, the most notable highlight is that the order requires the Department of Commerce and the Department of the Treasury