Crypto Market Sees $334M in Liquidations as Trump's Bitcoin Reserve Order Causes Uncertainty

Despite the hype around Trump's Executive Order to create a Strategic Bitcoin Reserve, the market hasn't responded positively.

The crypto market is handling a rough patch as traders react to tariff and Trump’s Bitcoin Reserve order. Bitcoin has dropped by 4.8% to $81,729, while Ethereum has taken an even bigger hit, falling 8% to hover around $2,000. Among the top 10 cryptos, Dogecoin is the biggest loser, sliding 13% to $0.16.

Despite the hype around Trump’s Executive Order to create a Strategic Bitcoin Reserve, the market hasn't responded positively. QCP Analysts believe this is because no actual budget has been allocated yet for Bitcoin purchases, causing uncertainty among investors.

$334 Million Liquidation Shakes the Market

With the changing current scenario, the market downturn has triggered massive liquidations, with Bitcoin, Ethereum, and XRP leading the sell-off. In the last 24 hours, liquidations have surpassed $334 million, affecting over 109,704 traders. Those who bet on price increases have taken the biggest hit.

Crypto Market Sees $614.63M in Liquidations Amid VolatilityIn the past 24 hours, the crypto market experienced significant turbulence, with a total of $614.63M in liquidations, according to the latest Liquidation Heatmap data. pic.twitter.com/1ujSpwVgPb

Bitcoin saw $186.35 million in liquidations, with long traders losing $123.21 million. Ethereum followed with $40.84 million in total liquidations, while XRP recorded a smaller $7.3 million in losses.

Altcoins like Solana (SOL), Cardano (ADA), Dogecoin (DOGE), Sui (SUI), and Litecoin (LTC) also faced substantial sell-offs, further destabilizing the market.

Bitcoin, Ethereum, and XRP Struggle

Bitcoin has decreased by 3% in the past 24 hours, now trading at $86,409. Despite a 1.9% increase in the last week, the overall sentiment remains weak, with trading volume dropping by 24.63%.

Ethereum has struggled to hold key support levels, currently battling to stay above $2,000. Analyst Ali Martinez has warned that if ETH drops below $2,114, it could test $1,250 in the coming weeks.

XRP is also facing pressure, decreasing 7.31% in the last 24 hours to $2.36. The uncertainty surrounding the crypto reserve plan has only fueled further volatility.

Crypto Reserve Plan Faces Pushback

Trump’s proposal to include ADA, XRP, and SOL in the U.S. Strategic Reserve has faced resistance. Industry leaders, including Coinbase CEO Brian Armstrong and Real Vision’s Raoul Pal, believe Bitcoin should remain the primary reserve asset. Armstrong argued that Bitcoin is the clearest successor to gold, while Pal suggested a market-cap-weighted index instead of altcoin inclusion.

What’s brewing?

Meanwhile, the U.S. government’s latest crypto disclosures reveal that it holds no SOL, ADA, or XRP, contradicting previous speculation. Following Trump’s Executive Order to establish a Strategic Bitcoin Reserve, Crypto Czar David Sacks clarified that while a digital asset stockpile will be created, it will only include assets obtained through forfeiture, with no new acquisitions. Onchain data confirms the government’s possession of 198,000 BTC but provides no evidence of ADA, XRP, or SOL holdings.

On the other hand, the government’s existing crypto reserves include 60,850 ETH ($122.96M), 122M USDT, and 40,293 BNB ($22.34M), among other assets. If liquidated, these assets could yield approximately 5,004 BTC. Sacks hinted at reallocating some digital assets into Bitcoin for portfolio optimization, demonstrating the administration’s focused strategy towards Bitcoin.

As skepticism mounts and the crypto reserve plan faces difficulties, it remains to be seen how this will unfold, potentially contributing to ongoing market turbulence.