Bitcoin prices plummeted 9% on Monday as investors lost confidence in the cryptocurrency’s prospects following President Donald Trump’s announcement of a U.S. strategic crypto reserve. The news sent shockwaves through the market, with ether falling 15% to $2,100 and stocks tied to cryptocurrencies also reversing direction.
Trump’s announcement was seen as a positive development for investors who had been worried about bitcoin’s recent price drop below $90,000. However, analysts warned that the flagship coin remained defenseless against macroeconomic concerns without a clear crypto-specific theme or catalyst.
“The effect of Trump’s comment will not continue,” said Yuya Hasegawa, a crypto market analyst at Bitbank. “The price may go up because of other developments this week, but Trump’s comment is already digested.”
Investors will be watching closely for updates on the direction of the reserve plans, which could potentially serve as a catalyst for bitcoin’s price. The White House has announced a Crypto Summit scheduled for this Friday, and officials have hinted at more news to come.
As a result, bitcoin prices fell to $86,000, down 8% from its previous high. Meanwhile, shares of companies like Coinbase and Robinhood also declined, with MicroStrategy swinging from a 14% rally to a 1.8% drop.
Source: https://www.cnbc.com/2025/03/03/crypto-market-today.html