Following Donald Trump's announcement of the US Strategic Cryptocurrency Reserve, Bitcoin price surged, but a rapid decline soon followed.
Bitcoin and Ethereum Price Rise
The world's largest cryptocurrency, Bitcoin, rose above $90,000, but its price fell by 8% to $82,327 over the last 24 hours. Ethereum also suffered a decline, losing 11% and falling below $2,000, currently trading at $2,021.
Reasons for Market Decline
The decline is linked to increased skepticism concerning the strategic reserve, which includes not only Bitcoin but other altcoins as well. Additionally, Donald Trump's tariffs have had a negative impact. Despite US Treasury Secretary Scott Bessent's message about lowering interest rates, the market trend did not reverse.
Market Consequences
There was a significant liquidation wave on the cryptocurrency market, with total liquidations amounting to $1.05 billion, of which $872 million were in long positions. The market will focus on upcoming economic data and the cryptocurrency conference on Friday.
The cryptocurrency market will continue to monitor economic indicators and anticipate the outcomes of the conference, which could further impact the industry.
