Bitcoin Panic-Selling Sparks Fears of Market Freefall as Trump’s Crypto Reserve Plan Unsettles Investors

‘Panic-Selling’ Could Be About To Crash The Bitcoin Price

According to Forbes, the cryptocurrency market has been experiencing significant turbulence following recent announcements by former U.S. President Donald Trump. Bitcoin's price has dropped to $80,000, with fears it could fall further to $70,000. This decline has been attributed to panic-selling, with 70% of the selling coming from investors who entered the market within the last three months. Ethereum also saw a drop, hitting $2,000 for the first time since late 2023. Ripple’s XRP, Solana’s SOL, and Cardano’s ADA have also been affected, with the market reacting to Trump's plans for a U.S. crypto reserve. The White House's decision to consolidate seized cryptocurrencies into a strategic reserve has sparked uncertainty, with some experts predicting further market volatility.

Forbes reports that Trump’s administration aims to maximize the value of these holdings, with the Treasury Secretary overseeing the portfolio. However, the lack of new cryptocurrency purchases has disappointed traders. The U.S. government’s previous sale of seized Bitcoin, which could have been worth $17 billion today, has also drawn criticism. Analysts suggest that this move might trigger a global race among nations to establish their own crypto reserves.

The Crypto Market Stumbles Amid Recession Fears

Fortune highlights the ongoing struggles in the cryptocurrency market, exacerbated by President Trump’s refusal to rule out a potential recession in 2025. The market has been further impacted by the administration’s tariff policies and the Federal Reserve’s cautious approach to interest rate cuts. Shares of crypto-related companies, such as Coinbase and MARA Holdings, have also suffered, with declines of around 12% and 13%, respectively. The uncertainty surrounding Trump’s strategic Bitcoin reserve plan, which relies on seized assets rather than new purchases, has added to the market’s instability.

Despite these challenges, the administration remains committed to making the U.S. a leader in the crypto space. However, the lack of clarity on future economic policies continues to weigh heavily on investor sentiment.

Mt. Gox Moves $900M in Bitcoin, Raising Concerns

Coinpedia reports that the defunct Mt. Gox exchange has moved 11,833 BTC, worth approximately $932 million, as part of its ongoing creditor repayment process. This significant transfer has raised concerns about potential market volatility, as large amounts of Bitcoin could flood the market if creditors decide to sell. The repayment deadline for Mt. Gox creditors has been extended to October 31, 2025, with the exchange still holding $2.8 billion worth of Bitcoin in its wallets.

Market analysts are closely monitoring these developments, as the movement of such large amounts of Bitcoin could have broader implications for the cryptocurrency market.

Ethereum Whale Activity Sparks Market Volatility

CoinDesk reports that a dormant Ethereum whale, holding tokens since the initial coin offering (ICO), has moved 7,000 ETH worth $13.8 million to the Kraken exchange. This transfer occurred as Ethereum’s price dropped to $1,760, its lowest level since October 2023. Large inflows into exchanges often signal intentions to liquidate assets, which can lead to increased price volatility. The whale still holds over 30,000 ETH, valued at more than $50 million, raising questions about future market movements.

Such activity highlights the ongoing challenges in the Ethereum market, with investors remaining cautious amid broader market uncertainties.

Ethereum Foundation Deposits 30K ETH into Maker Vault

Binance reports that a wallet linked to the Ethereum Foundation has deposited 30,098 ETH into a Maker vault, bringing the total collateral to 100,394 ETH. The vault carries a debt position of over 78 million DAI, with a liquidation price set at $1,127 per ETH. This significant transaction underscores confidence in Ethereum’s long-term value, though analysts warn of potential risks if the price approaches the liquidation threshold.

The move highlights the growing role of decentralized finance (DeFi) in leveraging crypto assets, with the Ethereum ecosystem continuing to evolve.

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