Bitcoin prices took a hit on Monday, falling nearly 4% to $89,251.51 as of 8:30 p.m. IST. The drop came after the cryptocurrency initially surged past $95,000 following U.S. President Donald Trump’s announcement of a Crypto Strategic Reserve. Investors reacted swiftly, leading to fluctuations in the broader crypto market.
Bitcoin’s Rollercoaster Ride After Trump’s Crypto Push
Bitcoin had a strong rally over the weekend, reaching $92,807 on Sunday, March 2, before climbing past $95,000 in response to Trump’s declaration. However, the momentum did not hold. By late Monday, the price had retraced to $89,251.51, marking a 4% decline in 24 hours.
At 11:07 p.m. IST, Bitcoin was trading at $90,573.10, reflecting some recovery from the session’s lows. Market analysts suggest that while Trump’s crypto-friendly stance was initially seen as a bullish catalyst, concerns over regulatory clarity and potential government control of digital assets may have led to profit-taking among traders.
Trump’s Crypto Reserve Plan and Market Reactions
The announcement of the U.S. Crypto Strategic Reserve was framed as an initiative to strengthen the country’s foothold in digital assets. Trump’s statement on Truth Social emphasized that his executive order on digital assets would include major cryptocurrencies such as Bitcoin, Ethereum, XRP, Solana, and Cardano.
- Bitcoin’s market capitalization dropped 4.6% to $1.79 trillion, mirroring the price dip.
- Ethereum, the second-largest cryptocurrency, tumbled 9.16% to $2,261.83.
- Broader market sentiment remained volatile, with traders assessing the long-term implications of government-backed crypto initiatives.
Crypto advocates initially welcomed the move, viewing it as a departure from the stricter policies under the previous Biden administration. However, skeptics worry that a government-controlled crypto reserve could lead to increased oversight and reduced decentralization, core tenets of the industry.
Other Cryptos Follow Bitcoin’s Lead
The effects of Trump’s crypto move extended beyond Bitcoin. The altcoin market also experienced sharp price swings, particularly for those mentioned in Trump’s announcement.
| Cryptocurrency | 24-Hour Change | Current Price (as of Monday) |
|---|---|---|
| Bitcoin (BTC) | -4.00% | $89,251.51 |
| Ethereum (ETH) | -9.16% | $2,261.83 |
| XRP | -5.4% | $0.54 |
| Solana (SOL) | -7.2% | $115.30 |
| Cardano (ADA) | -6.5% | $0.62 |
Solana and Cardano, both of which saw gains post-announcement, have since slipped back into the red. Market watchers note that such sharp reversals are common in crypto, especially after major political or economic statements.
What’s Next for Bitcoin and the Crypto Market?
While Trump’s announcement fueled initial optimism, uncertainty remains over how a Crypto Strategic Reserve would function. Would it mean more institutional adoption? Or could it lead to stricter regulations? These questions continue to loom over the market.
For now, Bitcoin remains highly volatile, and investors are watching closely for further updates from the Trump administration. Whether this move is a long-term win for the crypto industry or a step toward more government control remains to be seen.
