Bitcoin and Altcoins Slide After Trump Signs the Executive Order for Crypto Reserve Strategy
The digital asset market took a sudden dip after the U.S. President Donald Trump’s Crypto Reserve proposal, which did not live up to expectations from investors. According to CNBC, the market fell after Trump signed an executive order on cryptocurrencies. Through this order a strategic bitcoin reserve and a digital asset stockpile would be created for the United States.
Crypto Market Reacts
The impact on the Crypto market in March has been immense, with Bitcoin and other cryptocurrencies seeing sharp declines. Bitcoin’s price declined by 3% to $87,586.86, according to Coin Metrics. Other cryptocurrencies that had rallied earlier in the week, following Trump’s inclusion of them in the reserve strategy, also experienced losses. Ether decreased by 2% to $2,184.08, while XRP and Solana’s SOL token fell by 1% and 3%, respectively. Cardano’s ADA token saw a more significant decline, tumbling 13%.
Investors had been hoping that Trump’s crypto reserve proposal would lead to a widespread acceptance of cryptocurrencies. Instead, the plan’s vague outline and doubt about how it would be implemented made the sentiment in the markets go bearish. Moreover, in February, as well the price of Bitcoin dropped as the investors seeked clarity over Trump’s Bitcoin Reserve plan.
In a post on X, U.S. crypto and AI czar David Sacks said that the bitcoin reserve will include cryptos already owned by the government and will not cost anything to the taxpayers. The U.S. owns more than 198,000 bitcoins worth $17 billion.
Trump’s Executive Order
Earlier in the year, Trump released the executive order on cryptocurrency, detailing his administration’s approach to digital assets. The order highlighted regulatory clarity, considerations for national security, and a structured process for embracing blockchain technology. Despite this, the absence of clear-cut policies and guidelines has frustrated many in the crypto space. Following the announcement of this order, Bitcoin surged by 20%, after dipping for a long time.
The Bitcoin Reserve Plan had generated hopes of a friendlier regulatory regime towards crypto. The lack of an apparent road to implementation and worries about potential government interference keep investors on edge, though. Such uncertainty has caused the market downfall currently, with traders reconsidering their bets based on the regulatory threat.
White House Crypto Summit 2025
In order to address the industry concerns, the White House held the Crypto Summit 2025 to discuss the future of digital assets in the U.S. economy. The summit involved government representatives, financial regulators, and crypto leaders in discussing potential avenues for mass adoption.
Even with great expectations, the summit did not bring any revolutionary policy reforms. Rather, talks were centered on compliance efforts, anti-fraud, and the risks of decentralized finance (DeFi). The absence of a pro-crypto tone also contributed to subdued market sentiment, which caused higher volatility.
Steven Lubka, head of private clients and family offices at Swan Bitcoin said, “It is good news, but not what the market wanted in the short term. People were hoping for near-term buy pressure.”
Trump’s Crypto Strategy
Trump’s Crypto Reserve plan has caused a mixed response in the market. While some investors regarded it as a positive sign for digital currencies, others have raised eyebrows at the absence of concrete implementation plans. The early jump in Bitcoin and altcoins was brief because traders re-evaluated the larger picture implications of the policy.
Market experts foresee uncertainty continuing until further information regarding the strategy is released. In the meantime, cryptocurrencies like Ethereum, XRP, and Solana are under pressure, mirroring the cautious mood of investors.
