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Bitcoin prices haven’t reacted the way one would think amid a seminal moment for the crypto industry. Prices for the lead digital asset continue to experience selling pressure despite President Donald Trump moving to create a bitcoin (BTC-USD) reserve late last week. The US government will retain the estimated 200,000 bitcoin it has already seized in criminal and civil proceedings. Along with bitcoin prices having a sell-the-news moment, top crypto stocks such as Coinbase (COIN), Robinhood (HOOD), and MicroStrategy (MSTR) (now known as Strategy) have come under pressure on the announcement. But traders would be wise to keep a few things in mind. For one, the reserve validates the digital asset industry and could bring in more institutional investment. That’s good news for a company like Strategy, which has built up a large holding of bitcoin under Michael Saylor. And two, the reserve could make crypto more mainstream and drive up trading activity on platforms like Coinbase and Robinhood. That could unlock more earnings power at each key industry player than the market is currently estimating.
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