Bitcoin’s Decline and Market Volatility

The world’s largest cryptocurrency, Bitcoin, is experiencing a downward wave today, trading at $82,400, reflecting a decrease of approximately 4% in the last 24 hours.

This increased volatility marks the most significant turbulence since December, when Bitcoin’s price surged due to speculation about Trump’s return to the White House and his pro-crypto stance. Unlike last December’s upward momentum, Bitcoin’s price has been on a downward trend, losing over 15% in the past month.

The latest price swings follow Trump’s signing of an executive order establishing the Strategic Crypto Reserve. This order mandates full accounting of the U.S. government’s digital asset holdings, including an estimated 200,000 BTC worth around $17 billion. The administration ensures these assets will not be sold, with Trump’s Crypto Chief, David Sacks, comparing the reserve to a “digital Fort Knox.”

Additionally, Trump held a “crypto summit” with industry leaders including Coinbase CEO Brian Armstrong and Kraken co-CEO Arjun Sethi. Despite indications of increased institutional recognition of Bitcoin, market reactions have been bearish. Investors may be waiting for the reserve announcement or find the details insufficient. Trump first introduced the idea of a Strategic Bitcoin Reserve in July of last year.

Nick Ruck, director of LVRG Research, mentioned that investors are likely “disappointed” the reserve will be funded by Bitcoin seized through criminal or civil asset seizures rather than direct government purchases.

Bitcoin’s decline and increased volatility coincided with a broader market sell-off triggered by new tariffs announced by the Trump administration.

Along with these declines, serious liquidations affected the entire cryptocurrency market. According to reports, a total liquidation of $423 million occurred, with $387 million being in long positions.

The largest liquidations were seen in Bitcoin, Ethereum, XRP, Solana, and Dogecoin.

> This is not investment advice.