Bitcoin fell 9% to $83,000, erasing a recent rally sparked by Donald Trump’s announcement of a U.S. strategic cryptocurrency reserve. Investor enthusiasm quickly faded as concerns about potential tariffs triggered a sharp reversal in the market.
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The decline wasn’t limited to Bitcoin. Ethereum plunged 15% to $2,100, while more volatile cryptocurrencies including XRP, Solana, and Cardano suffered even bigger losses. The pressure on the crypto market also affected companies associated with it: Coinbase shares fell 4.6%, Robinhood — 6.4%, and MicroStrategy securities, which had shown a 14% increase at the beginning of trading, fell 1.8% by the end of the day.
Over the weekend, Trump announced the creation of a U.S. strategic crypto reserve. Rather than the previous concept of a “Bitcoin reserve,” the new reserve will be diversified and include Bitcoin, Ethereum, XRP, Solana, and Cardano. The move marks a major shift in the U.S. president’s stance, which previously focused exclusively on Bitcoin, to a broader range of digital assets that are potentially strategically important to the U.S.
Image source: TradingView
Despite the initial optimism generated by Trump’s statement, the cryptocurrency’s rally proved short-lived. A critical event for the market was Bitcoin’s fall below $90,000 last week for the first time in three months. This situation raised the possibility of a further decline in the rate, all the way to $70,000, which caused concern among investors. Although Trump’s statement was perceived as a positive signal for the crypto market, it was not enough of a catalyst for the industry’s long-term growth.
According to analysts, Bitcoin remains vulnerable to macroeconomic risks without additional incentives. Bitbank expert Yuya Hasegawa noted: “The effect of Trump’s statement has already been exhausted,” as the market quickly took this information into account. Moreover, no fundamentally new information was presented: it is only about the development of the initiative outlined in the US President’s January executive order.
However, the crypto community is eagerly awaiting further clarification. The White House’s head of AI and cryptocurrency, David Sacks, announced on the X social network that additional details will be revealed at the first Crypto Sasmit scheduled for Friday. If the announced initiatives prove significant, this could become a driver for the renewed growth of the crypto market.
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