Bitcoin price plummets amid market uncertainty.

Bitcoin’s price plunged nearly 10 percent on Monday as escalating trade tensions and uncertainty over a proposed U.S. crypto reserve fund drove investors away from risk.

Initially, Bitcoin and other digital assets surged after President Donald Trump floated the idea of creating a national cryptocurrency reserve. However, prices quickly tumbled as doubts emerged over whether the plan would materialize.

“Investors are selling everything,” said Forexlive manager Adam Button. “There’s a de-risking unfolding among crypto investors.”

By late Monday, Bitcoin had fallen 9.47 percent to $85,321.69, with the total market value of Bitcoin still exceeding a trillion dollars. Ether, the second-largest digital asset, dropped more than 15 percent, while major cryptocurrencies like XRP, Cardano, and Solana declined nearly 20 percent.

Adding to the pressure, Trump confirmed 25 percent tariffs on all imports from Mexico and Canada, prompting both countries to vow retaliation. Button noted that these trade war concerns, coupled with fears of slowing U.S. economic growth in the first quarter, have further rattled the market.

Trump’s Crypto Reserve Proposal Temporarily Boosts Market

Earlier in the day, cryptocurrency prices climbed after Trump named five digital assets—Bitcoin, Ether, XRP, Cardano, and Solana—as potential additions to a national strategic reserve fund. The government would build this reserve using digital currencies already in its possession, mainly from court seizures or sanctioned individuals and companies.

However, industry leaders expressed skepticism over the selection of currencies. Coinbase CEO Brian Armstrong suggested that restricting the reserve to Bitcoin “would probably be the best option.” He argued that Bitcoin’s simplicity and potential role as a successor to gold made it the strongest choice.

After Trump promoted the idea of a cryptocurrency reserve, investors rushed to buy, only to later question whether it would actually happen, Button explained. Since such a reserve requires congressional approval, he remained doubtful about its prospects.2

“It’s one thing to tweet about it,” Button said, “but you need to pass legislation to make this happen. And that’s still a long shot.”

Read Original Article: TechXplore

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