Crypto Market Under Pressure: Bitcoin Falls to $84,713 After Trump's Controversial Bitcoin Reserve Order

Crypto Market Under Pressure: Bitcoin Falls to $84,713 After Trump's Controversial Bitcoin Reserve Order

Bitcoin and cryptocurrencies under pressure after Trump's announcement

Bitcoin fell to $84,713 on Wednesday, erasing gains made at its recent peak of $90,000. This decline was a reaction from traders to former President Donald Trump's Bitcoin reserve decision. The total crypto market cap shrank by 4.55%, with all top 10 cryptocurrencies – including Ethereum, Solana and XRP – falling in unison.

The order directing federal authorities to add Bitcoin to US reserves through criminal forfeiture appears to have triggered a sell-off for unclear reasons. This uncertainty led to profit-taking after Bitcoin previously rose above $90,000.

Late in the evening, at 8:45 p.m. ET, the Bitcoin price stabilized a bit and was at $88,663 per unit. In the previous hour, $101 million in long Bitcoin positions had already been liquidated, resulting in a total of $245 million disappearing from crypto markets in 24 hours. Trading volume increased as exchanges reported increased volatility while leveraged positions were unwound.

This decline highlights the crypto market’s sensitivity to political signals. At the time of last observation, Bitcoin was settling above $88,663. Analysts warn of further volatility, especially with the upcoming White House Crypto Summit.

The current situation in the crypto market highlights the challenges investors face, especially in times of political uncertainty.