US President Donald Trump's announcement last weekend regarding the creation of a strategic crypto reserve in the United States has sparked mixed reactions in the market, according to a report released by asset manager Bitwise, according to Coindesk.

Following the announcement, crypto markets saw a surge, only to reverse those gains by Monday. Bitwise attributed this market behaviour to investor dissatisfaction with the inclusion of multiple tokens in the proposed reserve, rather than just Bitcoin (BTC).

Meanwhile, BTCUSD, after showing bullish momentum earlier today (Wednesday), is now experiencing a bearish correction on the H1 chart.

Trump's Crypto Reserve Faces Mixed Reactions

The President's announcement mentioned several cryptocurrencies, including XRP, Solana, and Cardano, with Bitcoin and Ether added later. Bitwise's Chief Investment Officer, Matt Hougan, expressed concern over the inclusion of "speculative assets" like Cardano, suggesting that the move appeared more strategic than calculated.

Despite what Bitwise termed as a "flawed rollout," the report argued that the market’s reaction was premature. It pointed out that Trump's initial proposals often change, and the final reserve could focus primarily on Bitcoin, potentially exceeding market expectations in size.

US Crypto Reserve Could Lead Global Shift

Bitwise also predicted that if the US does proceed with creating a crypto reserve, other countries are likely to follow suit. Any assets acquired by the US would likely be held for a long period.

The report concluded that the US government's decision to classify cryptocurrencies as "strategic" is a bullish development for the market. It suggested that the market's initial negative reaction would likely be tempered over time.

🔥 LATEST: Bitwise CIO Matt Hougan says, “Crypto is really emerging as an institutional asset class and it’s going to have all the bells and whistles of any other institutional asset class.” pic.twitter.com/2bMRriZu3Y

— Cointelegraph (@Cointelegraph) February 21, 2025

BTCUSD Faces Rejection, Buyers Await Support

The BTCUSD H1 chart shows the price finding support around 82,450. Following the last bounce, it formed a bullish engulfing candle and moved upward. After consolidating, it continued its ascent but faced rejection near 91,000.

At the time of writing, the cryptocurrency has formed three consecutive bearish candles. Therefore, buyers may need to wait for the price to find strong support followed by a bullish reversal pattern before entering long positions again.