The crypto market is going through a rough patch as traders react to tariff and Trump’s Bitcoin Reserve order. Bitcoin has dropped by 4.8% to $81,729, while Ethereum has taken an even bigger hit, falling 8% to hover around $2,000. Dogecoin is the biggest loser among the top 10 cryptos, sliding 13% to $0.16.
Despite the hype around Trump’s Executive Order to create a Strategic Bitcoin Reserve, the market hasn’t responded positively. QCP Analysts believe this is because no actual budget has been allocated yet for Bitcoin purchases, causing uncertainty among investors.
$334 Million Liquidation Shakes the Market
With the changing current scenario, the market downturn has triggered massive liquidations, with Bitcoin, Ethereum, and XRP leading the sell-off. In the last 24 hours, liquidations have surpassed $334 million, affecting over 109,704 traders. Those who bet on price increases have taken the biggest hit.
Bitcoin saw $186.35 million in liquidations, with long traders losing $123.21 million. Ethereum followed with $40.84 million in total liquidations, while XRP recorded a smaller $7.3 million in losses.
Altcoins like Solana (SOL), Cardano (ADA), Dogecoin (DOGE), Sui (SUI), and Litecoin (LTC) also faced significant sell-offs, adding to the market’s instability.
Bitcoin, Ethereum, and XRP Struggle
Bitcoin has dropped by 3% in the past 24 hours, now trading at $86,409. Despite a 1.9% increase in the last week, the overall sentiment remains weak, with trading volume down by 24.63%. Ethereum has struggled to hold key support levels, currently battling to stay above $2,000. Analyst Ali Martinez has warned that if ETH drops below $2,114, it could test $1,250 in the coming weeks.
XRP is also under pressure, down 7.31% in the last 24 hours to $2.36. The uncertainty surrounding the crypto reserve plan has only fueled further volatility.
Crypto Reserve Plan Faces Pushback
Trump’s proposal to include ADA, XRP, and SOL in the U.S. Strategic Reserve has faced resistance. Industry leaders, including Coinbase CEO Brian Armstrong and Real Vision’s Raoul Pal, believe Bitcoin should remain the primary reserve asset. Armstrong argued that Bitcoin is the clearest successor to gold, while Pal suggested a market-cap-weighted index instead of altcoin inclusion.
What’s brewing?
Meanwhile, the U.S. government’s latest crypto disclosures reveal that it holds no SOL, ADA, or XRP, contradicting previous speculation. Following Trump’s Executive Order to establish a Strategic Bitcoin Reserve, Crypto Czar David Sacks clarified that while a digital asset stockpile will be created, it will only include assets obtained through forfeiture, with no new acquisitions. Onchain data confirms the government’s possession of 198,000 BTC but provides no evidence of ADA, XRP, or SOL holdings.
Meanwhile, the government’s existing crypto reserves include 60,850 ETH ($122.96M), 122M USDT, and 40,293 BNB ($22.34M), among others. If liquidated, these assets could net around 5,004 BTC. Sacks hinted at reallocating some digital assets into Bitcoin for portfolio optimization, reinforcing the administration’s Bitcoin-focused strategy.
With skepticism growing, the crypto reserve plan may struggle to gain traction, adding to market turbulence.
Never Miss a Beat in the Crypto World!
Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
FAQs
The market is reacting to Trump’s Bitcoin Reserve order and tariffs, causing uncertainty. Bitcoin dropped 4.8%, and liquidations hit $334M.
Trump’s Executive Order aims to create a Bitcoin reserve, but no budget has been allocated yet, leading to market skepticism.
Onchain data confirms the U.S. holds 198,000 BTC, but no ADA, XRP, or SOL, despite speculation about broader crypto reserves.
