Bitcoin Hits $100K, Fear Lingers as U.S. Launches Strategic Crypto Reserve

• The U.S. launches a Strategic Bitcoin Reserve, yet market fear surpasses FTX collapse levels, highlighting investor uncertainty.
•  Bitcoin surged past $100K in 2024, but early 2025 pullbacks reignited neutral and fearful sentiment in the market.
•  Trump’s Bitcoin Reserve faces mixed reactions—supporters liken it to a “digital Fort Knox,” while critics question transparency.

The United States has officially created a Strategic Bitcoin Reserve. Despite this major development, market sentiment remains fearful. Analyst Quinten’s data from the Fear and Greed Index suggests heightened fear levels, even exceeding those seen during the FTX collapse. 

Bitcoin Price and Market Sentiment Shift

Bitcoin’s price movement has mirrored shifting market sentiment. Throughout early 2023, the price remained low, trapped in a consolidation phase. The Fear and Greed Index reflected fear shown by orange data points. However, after breaking out of this phase, Bitcoin gradually gained momentum. Fear gave way to neutrality, which was followed by greed in the market.

Bitcoin started to rise in the middle of 2023, which coincided with rising investor confidence. Green and yellow become the major colors of the Fear and Greed Score. Consequently, this positive trend continued into 2024, solidifying Bitcoin’s bullish phase. 

Throughout 2024, its price climbed steadily, staying within greed territory. However, as early 2025 approached, sentiment changed. Bitcoin reached new highs above $100,000, but a slight pullback led to renewed neutral and fearful sentiment.

Trump’s Bitcoin Reserve Sparks Debate

President Donald Trump has established a Strategic Bitcoin Reserve along with a Digital Asset Stockpile. This initiative has received mixed reactions. The reserves will contain digital assets obtained through government seizures, avoiding active purchases. White House AI and crypto advisor David Sacks compared this reserve to a “digital Fort Knox.”

However, industry experts remain divided. Critics argue the government’s decision lacks transparency. Charles Edwards of Capriole Fund dismissed the move as “a pig in lipstick.” He emphasized that the government is not actively acquiring Bitcoin. Furthermore, some analysts caution that including other cryptocurrencies in the reserve could create market instability.

Conversely, others see merit in this approach. Investment director Russ Mould noted that selling U.S. dollars to buy Bitcoin would be counterintuitive. Additionally, Jason Yanowitz of Blockworks criticized the inclusion of various cryptocurrencies, warning that it could undermine market trust.