Why Are Bitcoin, Ethereum Prices Falling?
Bitcoin and Ethereum are experiencing significant price declines as traders react to President Trump's recent Strategic Bitcoin Reserve order and new U.S. trade tariffs. Bitcoin has dropped 4.8% to $81,729, while Ethereum has fallen by 8%, settling near $2,000, a level echoing prices from November 2023. Notably, Dogecoin has suffered even greater losses, falling approximately 13%. The uncertainty stems from the fact that Trump’s order did not allocate an immediate budget for Bitcoin purchases, leading to skepticism among investors. The order establishes a Strategic Bitcoin Reserve, expected to be funded by Bitcoin seized through criminal and civil asset forfeitures, but the specifics remain unclear. Analysts consider the executive order a critical step toward institutional acceptance of Bitcoin; however, without firm legislative backing, the future of Bitcoin acquisitions remains uncertain. Pending discussions in Congress, particularly at the upcoming Bitcoin for America event, could shape the long-term outlook for Bitcoin holdings within U.S. financial reserves, and traders are looking for clearer regulatory guidance as global tensions affect risk assets like cryptocurrencies.
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