Bitcoin Drops 10% to $81,273 Amid Trump Reserve Uncertainty

Bitcoin's price plummeted to $81,000, sparking a wave of liquidations across major cryptocurrencies. This dramatic drop was triggered by uncertainty surrounding Donald Trump's Bitcoin Reserve order, which has left the crypto market in a state of turmoil. The liquidations, totaling $614.63 million in just 24 hours, have had significant implications for the health of the crypto ecosystem, particularly affecting Bitcoin, Ethereum, and Dogecoin.

Bitcoin liquidations topped the charts at $236.87 million, highlighting its volatility. Ethereum followed with liquidations of $106.85 million, while Dogecoin faced losses of approximately $21.79 million. The largest liquidation noticed was a $32.09 million order in the BTCUSDT pair on Binance, underscoring the aggressive trading strategies that have taken place during this tumultuous period.

At the time of writing, Bitcoin is trading at $81,273, struggling against a persistent bearish trend. The Relative Strength Index (RSI) indicates oversold conditions at 35.38, hinting at a possible short-term rebound despite bearish sentiment dominating the market. Ethereum has been observing a price of $2,061, showcasing minor recovery efforts, yet overall still under pressure. The market indicators point to continued selling pressure, with the RSI also showing oversold levels. Dogecoin, though slightly recovering at $0.1708, has dropped significantly over the past week, indicating a strong bearish trend amid increased volatility.

Amid these volatile circumstances, the controversy surrounding Trump’s Bitcoin Reserve order raises questions regarding the future of Bitcoin’s dominance in the U.S. reserve strategy. Industry leaders continue to push for a Bitcoin-first strategy, emphasizing its viability over alternative cryptocurrencies. Notably, Coinbase’s CEO Brian Armstrong and notable investor Raoul Pal argue for prioritizing Bitcoin due to its established market position. This perspective contrasts with considerations for including altcoins like Cardano, Ripple, or Solana in the government-backed reserve. Current government documentation shows no holdings of these altcoins as part of the reserve, reinforcing the focus on Bitcoin. This growing skepticism regarding Trump’s proposal suggests the potential for further market instability.

The current crisis paints a complex picture for Bitcoin and the broader crypt