Why encryption prices are volatile despite policy support

One of the largest puzzles in the encryption sector, despite the rapid and comprehensive axis of US policy makers to one of the pro -profit view, why the encryption prices did not respond decisively and in a sustainable way. These procedures include, but not limited to, multiple executive orders connected to the encryption sector – including the formation of strategic bitcoin reserves – as well as efforts to decline the CokkePoint 2.0 and other punitive organizational efforts. In addition, the top of encryption in the first White House has ever attracted business leaders and investors from all over the encryption sector, providing a direct line of communication between industry and the executive branch for the first time. In addition, these political procedures and events were supported by listed more than business leaders, legislators and investors in various economic fields.

With all these events, encrypted investors and policy advocates will be forgiven to expect prices and investment funds to be much higher and more positive than it turned out to be true in 2025. So far the opposite was true, with prices dropping significantly since it initially topped $ 100,00 after the results of the American election. Let’s take a look at some reasons.

Less than expected from Bitcoin Reserve

Although the long -awaited strategic Bitcoin reserves are now a reality through the executive matter, the facts that were disclosed during EO’s announcement and follow -up interviews have left some members of the encryption community less than admiration. While the United States has established both the strategic Bitcoin reserves in addition to the stock of digital assets other than bitcoin, there are many elements worth examining.

First, Bitcoin, which will form SBR – at least to this writing, will not be composed of the new Bitcoin purchases by the United States government. Instead, the government bitcoin has already retained as a result of seizures and other enforcement procedures to form a reserve. Second, although Treasury and Trade Trustees will search for neutral budget reasons to gain an additional bitcoin, there was no disclosure timetable. Finally, despite the expectations and comments that start that the tax law changes will be coming, in the days after the Bitcoin reserve declaration there are no statements.

In short, while the SBR news was welcomed by the market, the details were disappointing for investors.

Bybit Hack revived fears

Although the Cryptoasset sector continues to move further, the ghost of breaches, violations and other unethical actors in space still causes financial and auditory damage to the feelings of the market. As FTX shadow continues to decline, which accelerated the first batch of payments that are made from the Hawza recently, a new source of fear came in the foreground. Recently, the Crypto Exchange bybit group has been hacked by the North Korean Hacker group, which led to the theft of approximately $ 1.5 billion. The title shock was shocked aside, this event did not do anything to alleviate the investor’s concerns that the encryption organizations are still in the mindset of movement and the step that permeates startups.

While asset management companies and other financial institutions continue to develop products and services for almost every class of investor market, the fear of breakthroughs and violations is still proving a great opposite wind to estimate prices. Especially since many encrypted associations remain outside the protection of investors and/or insurance pollinations that have almost become a virtual preparation for the well -advanced financial markets, and the display of Tradfi offers begins as relatively higher risks for more traditional offers.

The assets of the chain have long been described as a safe origin, but as long as the large -scale breakthroughs continue to happen, it will remain difficult to persuade the broader market of this fact.

Overage economic uncertainty

Last but not least, uncertainty in the continuous macroeconomic economy, which seems to be still permeating the American economy – and therefore – the global financial system. Take the form of commercial wars, or the customs tariff that is enacted and reversed within days, or data assembled, or near the World Trade System, the effects were the same. Financial markets have witnessed a loud period, even with market leaders such as Apple to invest hundreds of billions to expand the United States’ existing operations.

In this sense, the encrypted association sector such as the assets of higher risks and assets with risks driven by the main headlines and sound tiles are traded in exchange for the adoption of the techniques based on the continuous Blockchain. Although the macro image remains mysterious at the present time, investors and politics should be ready to focus on the basics of asset dependence on assets and investor benefits to alleviate these large opposite winds.

Crypto in 2025 volatile, but investors will be well advised to monitor the opposite wind and the background.