In a single day, the price of bitcoin dropped 5% to $82,310, while its market capitalization dropped 4.29% to $1.63 trillion. In just seven days, XRP lost 21.85%, while Ethereum fell more than 5%.
The price of bitcoin saw a weakened impetus, dropping 5% over the previous day. CoinMarketCap shows that the price dropped to $82,310 per coin. Bitcoin’s market capitalization also took a hit, dropping 4.29 percent to $1.63 trillion.
In the last month, the price of bitcoin has dropped 14.47%, continuing its downward trend. Following US President Donald Trump’s announcement to establish a strategic US cryptocurrency reserve, there was a small reprieve when bitcoin prices increased.
Trump declared that a strategic US cryptocurrency reserve will comprise five digital assets: Bitcoin, Ether, XRP, Solana, and Cardano (ADA).
The second-most popular cryptocurrency, Ehtereum, dropped more than 5% over the last day and 15% over the last seven days. According to CoinMarketCap, Ethereum’s most recent trading price is $2,060.45.
One cryptocurrency that is included in the US cryptocurrency reserve, XRP, fell -21.85% during the last seven days. In the same time frame, Solana saw a -24 percent decline. As of right now, Solana was going for $127.38 per piece.
The digital asset trading company QCP Capital, based in Singapore, stated in a note that it “was widely expected to be bullish for Bitcoin.” The market, however, fell from $90k to $85k after the deal, in typical “sell the news” way, it noted.
The realization that no real budget has been set aside for Bitcoin purchases in the near term is probably the cause of the knee-jerk reaction lower,” it continued. Instead, the U.S. government’s existing Bitcoin holdings, mostly those seized through criminal or civil asset forfeitures, will be used to first establish the Reserve.
FAQ
Bitcoin’s price fell due to market reactions following US President Donald Trump’s announcement of a strategic US cryptocurrency reserve. While initially expected to be bullish news, the lack of a set budget for Bitcoin purchases led to a “sell the news” reaction, pushing prices down.
Alongside Bitcoin, Ethereum dropped over 5% in a day and 15% over the past week. XRP saw a significant loss of 21.85% in seven days, while Solana and Cardano (ADA) also faced steep declines.
The announcement initially led to a brief increase in Bitcoin’s price. However, since the reserve will be established using existing government-held Bitcoin rather than new purchases, investors reacted negatively, leading to a market sell-off.
Bitcoin has been on a downward trend for the past month, losing 14.47% in value. This latest 5% drop is part of the ongoing market correction rather than a one-time event.
Market analysts suggest that Bitcoin’s price could remain volatile in the short term. Future government policies, investor sentiment, and macroeconomic factors will influence whether the market stabilizes or continues its decline. pulvinar dapibus leo.
