Bitcoin Plunges Below 84000 After Trump Crypto Reserve Announcement

Bitcoin experienced a brief but significant drop, falling below $84,000. This decline was influenced by the Trump administration's announcement of establishing a crypto reserve, which failed to impress the market. The world's largest cryptocurrency had previously fallen as low as $84,000 shortly after the announcement, marking a notable decrease in its value.

Earlier in the week, Bitcoin had briefly surged to $94,000 before retreating due to global economic concerns. The cryptocurrency's price volatility was evident as it fluctuated between $84,000 and $95,000 within a short period. This volatility was driven by various factors, including market sentiment and global economic conditions.

Market experts had predicted that Bitcoin might experience a brief downward shift to a range of $85,000 to $88,000, which would precede its consolidation phase. The extreme volatility in the market brought Bitcoin back down from its peak, dampening investors' hopes for a sustained climb above $90,000.

The crypto market ended the week with a total market capitalization of $2.78 trillion, reflecting a decrease of over $60 billion. Bitcoin lost nearly 2% in value, trading at around $84,000. Ethereum, the second-largest cryptocurrency, also experienced a decline, losing over 4% and trading at around $2,150. Other altcoins, including XRP, Solana, and Dogecoin, also saw significant drops in their values.

The DeFi sector decreased the total value of protocols (TVL) to around $95 billion, indicating a loss of over $2 billion from the previous week. The market's reaction to news and rumors, especially those coming from the US, contributed to the volatility and the overall decline in the market.

Despite the market's volatility, some cryptocurrencies, such as Cardano, saw a value boost. However, the overall sentiment in the crypto sector remained negative, with most assets trading in the red. The market's challenging times kept new investors at bay and forced veteran traders to be cautious with their investments.