Trump's Bitcoin Reserve Order Sends Shockwaves Through the Crypto Market

The crypto market is going through a rough patch as traders react to tariff and Trump's Bitcoin Reserve order. Bitcoin has dropped by 4.8% to $80,00, while Ethereum has taken an even bigger hit, falling 8% to hover around $2000.

The crypto market is currently facing a rough patch as traders react to tariff announcements and Trump’s Bitcoin Reserve order. Among the top 10 cryptos, Dogecoin is the biggest loser, sliding 13% to reach $0.16.

> "Broad market sell-off as Trump announces tariffs and Biden's crypto reserve plan faces skepticism. BTC drops 4.8% to $81,729, wiping out last week's gains. Liquidations exceed $334M in 24 hours as 109,704 traders get liquidated. Biggest losers are those who bet on price increases."

As the market downturn continues to unfold, massive liquidations have been triggered, with Bitcoin, Ethereum, and XRP bearing the brunt of the sell-off. In the past 24 hours, liquidations have surpassed $334 million, affecting over 109,704 traders. Among those who bet on price increases (long traders), the total losses are even more staggering, with Long traders incurring $123.21 million in losses.

Bitcoin has seen the largest liquidations, with $186.35 million in unrealized gains wiped out. The next largest liquidations occurred in Ethereum, with $40.84 million in total liquidations and $32.74 million in Long trader losses. XRP also faced significant liquidations, with $7.3 million in losses.

Furthermore, altcoins such as Solana (SOL), Cardano (ADA), Dogecoin (DOGE), Sui (SUI), and Litecoin (LTC) also encountered substantial sell-offs, which adds to the instability in the market.

The market is reacting to the U.S. government's latest crypto disclosures, revealing 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.

Meanwhile, the government’s existing crypto reserves include 60,850 ETH ($122.96M), 122M USDT, and 40,293 BNB ($22.34M), among others. If liquidated, these assets could net around 5,004 BTC. Sacks hinted at reallocating some digital assets into Bitcoin for portfolio optimization, reinforcing the administration’s Bitcoin-focused strategy.

However, with skepticism growing over the crypto reserve plan, it may struggle to gain traction, which could contribute to further market turbulence in the coming weeks.