Bitcoin News

Story: Bitcoin and Ethereum Prices Slide as Market Reacts to Trump’s Strategic Bitcoin Reserve

By Pankaj K

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The cryptocurrency market is experiencing a sharp downturn as Bitcoin (BTC) and Ethereum (ETH) prices drop, with traders reacting negatively to President Donald Trump’s Strategic…

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Bitcoin has fallen 4.8% to $81,729, while Ethereum has dropped 8%, sinking near $2,000—a level not seen since November 2023.

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Despite what should have been a bullish move—Trump’s order establishing a Strategic Bitcoin Reserve—the market reaction has been the opposite.

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The answer lies in disappointed expectations. The crypto community had hoped that Trump’s executive order would result in large-scale Bitcoin acquisitions by the U.S.

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Instead, it directs U.S. officials to create “budget-neutral” strategies for building a government-controlled Bitcoin reserve, meaning that no taxpayer funds will be allocated…

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This revelation has caused uncertainty, with some investors taking profits after Bitcoin’s recent surge above $92,000 last week.

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According to Singapore-based trading firm QCP Capital, the knee-jerk reaction lower “likely stems from the realization that no actual budget has been allocated for Bitcoin…

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Similarly, David Lawant, head of research at FalconX, noted that many investors had overestimated the policy’s short-term impact and were now reassessing their expectations.

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Adding fuel to the fire, escalating U.S. trade tariffs have created additional uncertainty in global markets.

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Trade restrictions can have far-reaching consequences, affecting the global flow of capital and interest rates, which in turn impact riskier assets like cryptocurrencies.

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While Bitcoin and Ethereum have faced sharp declines, altcoins have been hit even harder. Dogecoin, which had gained momentum in recent weeks, has plunged 13% to $0.

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Despite the ongoing decline, some analysts believe that this downturn is a healthy market correction rather than the start of a prolonged bear market.

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Bitcoin remains up over 50% year-to-date, and Ethereum’s upcoming network upgrades could drive renewed investor interest in the coming months.

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For now, the market will likely remain highly volatile, with Bitcoin facing key support levels at $78,000 and Ethereum hovering around the $1,900 mark.

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Investors are also closely watching inflation data and Federal Reserve policy decisions this week, as these could significantly influence crypto market sentiment.

The Currency Analytics

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