The crypto market experienced significant turbulence as Bitcoin fell 4.1% in one hour following Trump's announcement of the US crypto reserve.
Bitcoin Fall and Liquidations
Bitcoin dropped below $90,000, leading to over $114 million in liquidations. Total liquidations over the past 24 hours reached $1.08 billion, affecting 238,726 traders. The largest single order was liquidated on Binance, with a BTC/USDT trade worth $15.49 million according to Coinglass data.
Trump's Crypto Reserve Announcement
President Donald Trump announced the establishment of the US Crypto Strategic Reserve, which will include Bitcoin, Ethereum, XRP, Solana, and Cardano. Following the announcement, Bitcoin surged to nearly $95,000 before stabilizing around $93,000. Cardano and XRP saw price increases of 40% and 16% respectively.
Analysts' Predictions
Geoff Kendrick, Head of Digital Asset Research at Standard Chartered, highlighted the market's strong reaction to Trump's announcement and noted a shift from 'selling rallies' to 'buying dips'. Kendrick projected Bitcoin's price could reach $500,000 by 2028.
The creation of a crypto reserve could spark state-level interest in cryptocurrencies and affect future policy developments in the field.
