- Bitcoin nosedived 5% in the past day, crashing from $86,187.90 to $82,200.
- The decline was followed by $616.7 million in liquidations across the market.
- This crash comes likely from Trump’s stubborn stance on tariffs on other countries.
Bitcoin took a big hit, dropping fast from $86,187.90 to $82,200 in just hours. Other cryptos also fell hard. Ethereum (ETH) went down 6%, SOL lost 8%, and Dogecoin (DOGE) dropped sharply by 10%.
This downturn caused $616.7 million in liquidations across the crypto market, affecting 225,578 traders in the last day, data from Coinglass shows. The biggest single sell order, worth $32.09 million, happened on Binance.
Trump’s Bitcoin Reserve Plan Fails to Boost Market
This was the result of crypto market participants hoping for a bullish outcome from the US government’s new crypto strategy being left disappointed.
The so-called “Strategic Bitcoin Reserve” failed to provide the expected boost. Instead, a combination of regulatory uncertainty and geopolitical tensions triggered extreme fear across the market, with the Crypto Fear and Greed Index sinking to a worrying 17.
Trump’s Strategic Bitcoin Reserve Plan Disappoints Investors
On March 2nd, US President Donald Trump vowed to establish a “US Crypto Reserve” to elevate the digital asset industry after what he called “corrupt attacks” by the Joe Biden administration.
His pledge to make the US the “Crypto Capital of the World” sparked enthusiasm among investors, particularly as he mentioned assets like XRP, Solana (SOL), and Cardano (ADA) in his plan, alongside Bitcoin and Ether (ETH). But this positive feeling did not last long.
Related: Bitcoin ETF Letdown? BTC Momentum Stalls as Market Cycles in
Government Uses Seized Bitcoin for “Strategic Reserve,” Market Reacts Negatively
On March 7th, Trump officially signed an executive order to establish the reserve but delivered an unexpected twist: instead of buying new crypto assets, the reserve would be formed using Bitcoin already seized by the government from criminal or civil asset forfeiture cases.
This news crushed market hopes. Many had thought the US government would create new demand for crypto. The announcement, which came just before a White House meeting with crypto leaders, caused an immediate sell-off, pushing Bitcoin’s price sharply lower.
Global Tensions Add to Crypto Market Price Pressure
Besides the Strategic Reserve issue, Trump’s wider economic plans also made Bitcoin’s price fall further. His recent statements about imposing tariffs on big economies like the European Union, China, Brazil, India, Mexico, and Canada, shook the crypto markets.
Related: Bitcoin’s National Hoards: Top Countries Stockpiling BTC in 2025
The president said these tariffs would bring in “hundreds of billions of dollars” and make America so rich that “you’re not gonna know where to spend all that money.” While he intended these comments to help US industries, they created uncertainty about the economy. This added more pressure to riskier assets like Bitcoin.
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Source: https://coinedition.com/crypto-market-crash-bitcoin-dumps-as-trumps-strategic-reserve-backfires/