The crypto market has encountered challenges amid Donald Trump's executive order to create a strategic Bitcoin reserve, which has not received a positive response from investors.
Market's Negative Reaction
Following Trump's Bitcoin reserve order, Bitcoin's price dropped by 4.8% to $81,729, Ethereum fell by 8% to hover around $2,000, and Dogecoin emerged as the biggest loser, sliding 13% to $0.16. QCP analysts attribute this to the uncertainty among investors due to the lack of an allocated budget for Bitcoin purchases.
Massive Market Liquidations
The market downturn triggered significant liquidations exceeding $334 million in the past 24 hours, affecting over 109,704 traders. Bitcoin faced $186.35 million in liquidations, with long traders losing $123.21 million. Ethereum followed with $40.84 million, while XRP recorded $7.3 million in losses. Altcoins like Solana, Cardano, and Litecoin also experienced substantial sell-offs.
Crypto Reserve Plan Faces Pushback
Trump's proposal to include ADA, XRP, and SOL in the U.S. Strategic Reserve has met resistance. Industry leaders, including Coinbase CEO Brian Armstrong and Real Vision's Raoul Pal, advocate for Bitcoin to remain the primary reserve asset.
The crypto market is undergoing significant trials amid political developments and uncertainty, which may continue to affect its stability in the near future.
