Unless Trump announces a Strategic Bitcoin Reserve (SBR), his various policy announcements are creating market chaos. Additionally, North Korea's recent hack of Bybit eroded confidence in the market.

Meanwhile, the U.S. government’s focus on fiscal responsibility is not favorable for Bitcoin. Prices could decline further, but there is a potential path to recovery.

For Bitcoin to rally, a few key events need to happen:

1. Trump announces an SBR.

2. JP Morgan agrees to bank Coinbase and Kraken.

3. BNY Mellon begins custodying Bitcoin and enables purchases on its platform.

If these conditions are met, Bitcoin could reach $120K. Furthermore, major donors who contributed millions to Trump’s campaign are unhappy, which may pressure him to make strategic announcements to regain their support.