U.S. Executive Order on Digital Assets

U.S. President Donald Trump signed an executive order to create a digital asset reserve, retaining seized Bitcoin (BTC) and altcoins without new purchases.

Market Impact

The reserve acts as a strategic stockpile and does not contribute to buying pressure, disappointing traders. They are now pursuing short-dated put options in BTC, ether (ETH), and solana (SOL), while XRP sentiment remains strong.

A put option allows the buyer to sell an asset at a set price later, protecting against price slides. Recent skews indicate a demand for BTC, ETH, and SOL puts.

Andrew Melville, research analyst at Block Scholes, stated that while short-tenor skews indicate downside fears, longer expiries for BTC and ETH remain bullish, and XRP options show positive skews beyond one week.

Upcoming Events

Traders are focusing on the White House crypto summit and the U.S. nonfarm payrolls report. The summit may impact regulatory clarity on digital assets, while payroll data is expected to show improved job creation.

A weak jobs report could lead to expectations of three Federal Reserve rate cuts this year, potentially benefiting risk assets like BTC. However, Trump’s tariffs might introduce uncertainty affecting sustainability.

Markus Thielen from 10x Research noted the Fed’s cautious stance and the possibility of a lower ‘Fed put’ under Trump’s administration, suggesting more market volatility may be tolerated before intervention occurs.