One week after U.S. President Trump announced a strategic Bitcoin reserve, the asset is trading down—mostly thanks to wider macroeconomic uncertainties stemming from the new commander in chief’s dramatic and unpredictable policies.

Bitcoin was priced at a little over $84,000 per coin as of late Friday evening after dipping nearly 4% over a seven-day period, CoinGecko shows.

But despite dipping more than 20% from its record high in January, the slump could be brief, analysts told Decrypt.

Thanks to…well, Trump—again.

A White House official told a room of crypto big wigs on Thursday that the new administration wants to acquire as much Bitcoin as possible.

This week had no shortage of Bitcoin news.

ETF action

American crypto investors continued to cash out of Bitcoin ETFs this week, with nearly $900 million leaving the investment vehicles as of Thursday, according to the latest data from Farside Investors.

Now, Bitcoin ETFs are lagging behind their gold counterparts, after having briefly overtaken them back in December.

Still, not to worry: Experts told Decrypt that the products have room to run this year, with Bloomberg’s ETF analyst Eric Balchunas adding that he thought Bitcoin was likely to win the ETF war over the long-term.

Bitwise launches another BTC-related ETF

Speaking of ETFs, asset managers still don’t think the market’s crowded: Bitwise on Tuesday launched a new fund giving investors exposure to publicly traded companies with the biggest Bitcoin stashes.

The new Bitwise Bitcoin Standard Corporations ETF—OWNB—tracks 21 firms that hold 1,000 Bitcoins or more, including Strategy (formerly MicroStrategy), Bitcoin miner MARA, America’s biggest crypto exchange, Coinbase, and even electric car company Tesla.

Rumble buys more Bitcoin

YouTube rival Rumble wasn’t included in Bitwise’s index, but the company is a good example of a smaller firm stacking sats: The media firm last year said it would allocate $20 million of its excess cash reserves to Bitcoin.

And on Wednesday, the Nasdaq-listed platform announced it had bought roughly 188 orange coins for its treasury at an average price of $91,000 per token.

Is Strategy done buying?

Bitcoin treasury Strategy, which came up with the blueprint Rumble is now following, has slowed down its BTC buys after a manic shopping spree.

Decrypt spoke to experts who said it was unlikely the company—previously known as MicroStrategy—was giving up its long-term plan, and rather focusing on its new stock offering, STRK.

White House going orange

Perhaps most dramatically for Bitcoiners this week, news dropped that the White House does indeed want to buy more Bitcoin.

Attendees at a closed-door roundtable hosted by the Bitcoin Policy Institute on Tuesday confirmed to Decrypt that the new administration is planning to buy as much of the cryptocurrency as possible. That’s at least what Bo Hines, the executive director of the Presidential Working Group on Digital Assets, reportedly said.

The news comes after President Trump last week followed through with his campaign promise and signed an order to establish a Bitcoin strategic reserve.

Edited by James Rubin

Solana’s SOL and xrp (XRP) edged up 5% in the past 24 hours to lead gains among majors Saturday as bitcoin (BTC) saw resistance at the $84,000 price level.

SOL surged 7% as a contentious SIMD-0228 drew to a close late Thursday in favor of those against it, keeping its current inflation schedule intact. The proposal drew the highest voting turnout in Solana’s governance history, as reported, with those against saying a passage could disrupt parts of its flourishing DeFi ecosystem and dispel chances of further institutional interest.

XRP rose 5% following a strong week for closely-related Ripple Labs, which bagged a payments license in the UAE and, per sources, is said to be on track for a close of its long-running court case against the U.S. Securities and Exchange Commission.

Meanwhile, memecoins caught a bid on Friday as pepecoin (PEPE), toshi (TOSHI), dogecoin (DOGE) and other memes rose as much as 40%, providing volatility for traders amid a mostly flat market.

Base-based TOSHI jumped 38%, leading gains, with PEPE up as much as 12% before paring gains in European afternoon hours. Meanwhile, Base-based KEYCAT jumped more than 100% as developers announced a partnership with Acheron Trading as its official market maker — aiming to boost liquidity and expand the token’s presence on exchanges.

The broader memecoin rally reflects a shift in trader behavior as bitcoin (BTC) trades sideways, pushing speculators toward higher-risk, higher-reward assets.

BTC ended the week down 3%, faring slightly better than the past two weeks where extreme volatility saw it bounce between $75,000 and $95,000 — bringing it down as much as 20% from a Jan. peak above $108,000.

As such, traders continue to eye macroeconomic factors and rate cut decision for cues on further positioning.

“The recent cooling in inflation strengthens the case for potential rate cuts later this year,” Agne Linge, head of Growth at WeFi, told CoinDesk in a email. “However, escalating geopolitical and economic tensions particularly from the ongoing trade war add complexity to the Federal Reserve’s policy trajectory.”

Bitcoin has experienced intense whipsaw price action over the past two weeks, fluctuating between $79K and $85K amid heightened macroeconomic uncertainty. Its rapid on-off price dynamics reflect its increasing sensitivity to macroeconomic factors—suggesting that Bitcoin is behaving more like a risk-on asset than a traditional store of value. This volatility is likely to persist in the coming weeks as geopolitical tensions and macro-uncertainties continue to drive market sentiment,” Linge added.

Alex Kuptsikevich, FxPro chief market analyst, told CoinDesk in an email that a strong break above the $89,000 level should be watched by traders looking to turn bullish.“Only if the market breaks above its 200-day moving average will we be able to take it as a signal of a return to growth. For now, the market dynamics resemble no more than just a bumpy downtrend,” Kuptsikevich said. “Bears are regaining control of the market on bounces to the $83,500 area.”

Bitcoin has been struggling with lower lows in recent weeks, leaving many investors questioning whether the asset is on the brink of a major bear cycle. However, a rare data point tied to the US Dollar Strength Index (DXY) suggests that a significant shift in market dynamics may be imminent. This bitcoin buy signal, which has only appeared three times in BTC’s history, could point to a bullish reversal despite the current bearish sentiment.

For a more in-depth look into this topic, check out a recent YouTube video here:
Bitcoin: This Had Only Ever Happened 3x Before

BTC vs DXY Inverse Relationship

Bitcoin’s price action has long been inversely correlated with the US Dollar Strength Index (DXY). Historically, when the DXY strengthens, BTC tends to struggle, while a declining DXY often creates favorable macroeconomic conditions for Bitcoin price appreciation.

Despite this historically bullish influence, Bitcoin’s price has continued to retreat, recently dropping from over $100,000 to below $80,000. However, past occurrences of this rare DXY retracement suggest that a delayed but meaningful BTC rebound could still be in play.

Bitcoin Buy Signal Historic Occurrences

Currently, the DXY has been in a sharp decline, a decrease of over 3.4% within a single week, a rate of change that has only been observed three times in Bitcoin’s entire trading history.

To understand the potential impact of this DXY signal, let’s examine the three prior instances when this sharp decline in the US dollar strength index occurred:

• 2015 Post-Bear Market Bottom

The first occurrence was after BTC’s price had bottomed out in 2015. Following a period of sideways consolidation, BTC’s price experienced a significant upward surge, gaining over 200% within months.

The second instance occurred in early 2020, following the sharp market collapse triggered by the COVID-19 pandemic. Similar to the 2015 case, BTC initially experienced choppy price action before a rapid upward trend emerged, culminating in a multi-month rally.

• 2022 Bear Market Recovery

The most recent instance happened at the end of the 2022 bear market. After an initial period of price stabilization, BTC followed with a sustained recovery, climbing to substantially higher prices and kicking off the current bull cycle over the following months.

In each case, the sharp decline in the DXY was followed by a consolidation phase before BTC embarked on a significant bullish run. Overlaying the price action of these three instances onto our current price action we get an idea of how things could play out in the near future.

Equity Markets Correlation

Interestingly, this pattern isn’t limited to Bitcoin. A similar relationship can be observed in traditional markets, particularly in the Nasdaq and the S&P 500. When the DXY retraces sharply, equity markets have historically outperformed their baseline returns.

The all-time average 30-day return for the Nasdaq following a similar DXY decline stands at 4.29%, well above the standard 30-day return of 1.91%. Extending the window to 60 days, the Nasdaq’s average return increases to nearly 7%, nearly doubling the typical performance of 3.88%. This correlation suggests that Bitcoin’s performance following a sharp DXY retracement aligns with historical broader market trends, reinforcing the argument for a delayed but inevitable positive response.

Conclusion

The current decline in the US Dollar Strength Index represents a rare and historically bullish Bitcoin buy signal. Although BTC’s immediate price action remains weak, historical precedents suggest that a period of consolidation will likely be followed by a significant rally. Especially when reinforced by observing the same response in indexes such as the Nasdaq and S&P 500, the broader macroeconomic environment is setting up favorably for BTC.

Explore live data, charts, indicators, and in-depth research to stay ahead of Bitcoin’s price action at Bitcoin Magazine Pro.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always do your own research before making any investment decisions.