Bitcoin and Ethereum Prices Drop Amid Trump’s Strategic Bitcoin Reserve Order and Trade Tariffs
Bitcoin and Ethereum have recently seen sharp declines in their values. Bitcoin has fallen by 4.8% to $81,729, while Ethereum has decreased by 8%, settling near $2,000—a level last seen in November 2023. Dogecoin has experienced an even steeper drop, plummeting 13% to $0.16, making it one of the hardest-hit among major cryptocurrencies.
These losses coincide with market reactions to President Donald Trump’s newly signed Executive Order, which establishes a Strategic Bitcoin Reserve, as well as the introduction of U.S. trade tariffs affecting global economic sentiment.
Trump’s Executive Order and Market Response
On Thursday, President Trump signed an Executive Order creating the Strategic Bitcoin Reserve and authorizing a separate Digital Asset Stockpile for other cryptocurrencies, such as Ethereum. Contrary to expectations that this move might boost cryptocurrency prices, the market has trended downward. According to QCP Capital, a Singapore-based digital asset trading firm, this decline may reflect disappointment over the absence of an immediate budget for Bitcoin purchases.
Bitcoin’s price dropped sharply by 5.7% within an hour of the announcement, erasing earlier gains that had pushed it above $92,000. It has since stabilized somewhat at $87,200, per CoinGecko data. David Lawant, head of research at FalconX, noted that the initial 5% plunge likely stemmed from unmet expectations of immediate government buying. However, he highlighted that the losses were partially offset as the market adjusted, and many in the industry see the order as a positive step toward Bitcoin’s institutional legitimacy.
Details of the Strategic Bitcoin Reserve
The Executive Order outlines a “budget-neutral” approach, directing the Treasury and Commerce departments to acquire additional Bitcoin without relying on taxpayer funds. The reserve will initially be funded with Bitcoin already held by the U.S. government, primarily from criminal and civil asset forfeitures. U.S. government wallets currently hold around 198,000 BTC, valued at approximately $16.1 billion, according to Arkham Intelligence. However, some of this may not be usable if it must be returned to previous owners affected by exchange hacks.
To expand the reserve, the order calls for a 60-day Treasury review to evaluate legal and investment implications. Potential funding strategies include reallocating U.S. gold reserves or drawing from the Exchange Stabilization Fund, ensuring no direct cost to taxpayers.
Industry Optimism and Legislative Prospects
Despite the market’s lukewarm reaction, industry experts remain optimistic. Lawant emphasized that the order is widely viewed as a groundbreaking move, potentially paving the way for other nations to adopt Bitcoin as a sovereign asset. A White House official echoed this sentiment, telling Cgpt.news that Bitcoin’s unique attributes—its security, decentralization, and lack of an issuer—justify its “special treatment” compared to other cryptocurrencies like XRP, Solana, or Cardano.
The order’s long-term impact may hinge on congressional action. While it sets an immediate policy direction, legislation could cement Bitcoin’s role in U.S. financial reserves. An upcoming event on March 11, hosted by Senator Cynthia Lummis and the Bitcoin Policy Institute, is expected to spark further debate on this front.
Broader Market Pressures
Traders are grappling with uncertainties beyond the reserve order. The lack of clear regulatory guidance continues to weigh on sentiment, while Trump’s trade tariffs have introduced additional turbulence. These tariffs have unsettled global markets, diminishing the appeal of riskier assets like cryptocurrencies and contributing to the current downturn.
As the crypto market navigates these developments, the interplay between policy innovation and economic headwinds remains a key focus for investors.
| Name | Price | 24H (%) |
|---|---|---|
 Bitcoin(BTC) | $82,661.22 | -3.05% |
 Ethereum(ETH) | $1,800.56 | -5.72% |
 Tether USDt(USDT) | $1.00 | -0.04% |
 XRP(XRP) | $2.03 | -5.15% |
 BNB(BNB) | $589.87 | -3.48% |
 Solana(SOL) | $119.13 | -6.21% |
 USDC(USDC) | $1.00 | -0.01% |
 Dogecoin(DOGE) | $0.164715 | -5.60% |
 Cardano(ADA) | $0.64 | -5.28% |
 TRON(TRX) | $0.233508 | -1.87% |
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