The cryptocurrency market is experiencing significant volatility, largely attributed to trader reactions to recent tariffs and President Trump's proposed Bitcoin Reserve order. Bitcoin has declined by 4.8% to $81,729, while Ethereum suffered a more substantial drop of 8%, trading near $2,000. Dogecoin experienced the most significant downturn among the top ten cryptocurrencies, falling 13% to $0.16.

Despite the initial hype surrounding Trump's executive order, the market's response has been negative. QCP Analysts suggest this is due to the lack of a defined budget for Bitcoin acquisitions, creating investor uncertainty.

Market Downturn and Liquidations

The current market downturn has resulted in substantial liquidations, exceeding $334 million in the last 24 hours and impacting over 109,704 traders. Bitcoin, Ethereum, and XRP led the sell-off. Long positions suffered the most significant losses. Bitcoin saw $186.35 million in liquidations, with long traders losing $123.21 million. Ethereum followed with $40.84 million, and XRP recorded $7.3 million in losses. Other altcoins, including Solana (SOL), Cardano (ADA), Dogecoin (DOGE), Sui (SUI), and Litecoin (LTC), also experienced considerable sell-offs, contributing to market instability.

Recent Price Movements and Analysis

Bitcoin has decreased by 3% in the last 24 hours, currently trading at $86,409. While showing a 1.9% increase over the past week, the overall market sentiment remains weak, with trading volume down 24.63%. Ethereum is struggling to maintain key support levels, facing a potential drop below $2,000. Analyst Ali Martinez warns that a breach of $2,114 could lead to a test of $1,250 in the coming weeks. XRP is also under pressure, falling 7.31% in the last 24 hours to $2.36. The uncertainty surrounding the proposed crypto reserve plan continues to fuel market volatility.

Pushback Against Crypto Reserve Plan

Trump's proposal to include ADA, XRP, and SOL in the U.S. Strategic Reserve has faced considerable pushback. Prominent figures like Coinbase CEO Brian Armstrong and Real Vision's Raoul Pal advocate for Bitcoin as the primary reserve asset. Armstrong argues that Bitcoin's characteristics make it the most suitable choice.