Why Did Bitcoin and Altcoins Fall? Trump's Reserve Decision Took the Price to 85! - Coin Bulletin

After the Trump administration announced the Strategic Bitcoin Reserve, causing the price of Bitcoin to rise, the statement that no new purchases will be made led to a sharp market decline and a $530 million liquidation.

After US President Donald Trump signed the Strategic Bitcoin Reserve decree, the price of Bitcoin initially rose by 3.7% to $91,250, but later dropped by 7.5% to $84,480 after statements that no new Bitcoin purchases would be made. Currently, it is trading at $87,976.

The Trump administration has decided to evaluate the 198,000 Bitcoins held by the US government as a long-term reserve instead of selling them. While this development was initially welcomed by the market, statements that the reserve will be limited to existing Bitcoin assets and no new purchases will be made disappointed investors. As a result, the price of Bitcoin experienced a rapid decline.

530 million dollars were liquidated

The sharp movements in Bitcoin also affected the altcoin market. Ethereum (ETH) and other major cryptocurrencies similarly exhibited volatile movements. Due to these price changes throughout the day, positions worth 530 million dollars were liquidated and a total of 152 thousand investors were liquidated.

The initial decision to consider the government's Bitcoin reserves as a reserve, reducing pressure on supply and pushing prices up. However, announcements that the reserve will not be expanded and no new purchases will be made disappointed investors. In particular, some analysts' interpretation of this development as a "step to increase institutional interest in Bitcoin" had created a short-term buying wave in the market. However, when it became clear that the decision would not lead to a demand-driven increase in the long term, sharp sales followed.

Altcoins also took a hit

Among the altcoins most affected by these developments were Solana (SOL), XRP, and Cardano (ADA). Rumors that these three coins would be in reserve in the past days had pushed their prices up. However, when it was confirmed that this news was not true, SOL dropped by 7%, XRP by 9%, and ADA by 11%.

In addition to BTC, the US government also holds Ethereum and some stablecoins. However, these assets have not been included in the reserve plan, so their impact on the market remains uncertain.