Over $1B Got Rekt in the Past 24 Hours: What’s Incoming for the Bitcoin Statergic Reserve?
The post Over $1B Got Rekt in the Past 24 Hours: What’s Incoming for the Bitcoin Statergic Reserve? appeared first on Coinpedia Fintech News
U.S. President Donald Trump had announced a 25% tariff on Canada & Mexico a few days before. The markets toppled then but bounced back heavily, attracting over $300 billion in liquidity after validating a crypto strategic reserve. In the times when the markets were hoping that these tariffs could get delayed, Trump confirmed that the tariffs would begin on March 4, 2025. With this, the traditional markets plunged, driving the crypto markets back under a strong bearish influence.
Bitcoin price and Ethereum price faced a huge pullback as they dropped below their respective psychological barriers at $84,000 & $2100, respectively. Therefore, this suggests that the excitement of the most-awaited announcement of a strategic reserve was very short-lived. Besides, the impact over the crypto markets quickly nullified with the probability of the start of a fresh tariff war. This suggests the market participants do not appear to be confident over the next price action as they continue to remain in fear.
What’s Next for the Bitcoin Strategic Reserve?
Ever since the President announced the creation of a strategic reserve, the demand for only a ‘Bitcoin strategic reserve’ has emerged. Many criticize the inclusion of XRP, SOL, ADA, or other altcoins and push for only a Bitcoin strategic reserve. Besdies, more clarity is yet to be given after the announcement, while the formation is expected to consume more time than expected as it has to be tabled and approved in the parliament.
Meanwhile, after a year of the first BTC ETF approval, the round of the first strategic reserve could have a similar impact. As rightly pointed out by a popular analyst, Crypto Rover, the BTC price has experienced a smooth upswing ahead of the expectation of the strategic reserve, and hence the impact of the news is yet to happen as it occurred after the approval of the ETFs.
Therefore, the crypto markets are heading towards a very crucial phase, and hence, it would be more interesting to watch what new updates will unfold in the coming days.
