Bitcoin Plunges into Bear Market as Trump's Crypto Reserve Plan Sparks Volatility

Bitcoin Faces Largest Monthly Loss Since 2022

According to The Guardian, Bitcoin experienced a significant decline in February 2025, marking its largest monthly loss since June 2022. The cryptocurrency fell by 17.5%, closing the month at approximately $84,252, after hitting a three-month low of $78,273. This drop pushed Bitcoin into a technical bear market, as it fell over 20% below its January peak of $109,071. The decline was attributed to market volatility and fears of a global trade war, exacerbated by Donald Trump's proposed tariffs on imports from Canada, Mexico, and China. Additionally, a cyber-attack on the Bybit exchange, resulting in the theft of $1.5 billion in digital assets, further dampened market sentiment.

Despite the downturn, optimism returned when Trump announced the inclusion of Bitcoin and other cryptocurrencies in a new U.S. Crypto Strategic Reserve. This announcement led to a brief recovery, with Bitcoin climbing back to $94,000. Analysts, however, remain cautious, citing ongoing market uncertainties and the need for stronger support from the U.S. administration to stabilize the crypto sector.

Trump's Crypto Strategic Reserve Sparks Market Rally

MarketWatch reported a surge in cryptocurrency prices following President Donald Trump's announcement of a U.S. Crypto Strategic Reserve. Bitcoin rose by 10%, peaking at $94,821, while Ethereum gained 12%. Other cryptocurrencies, such as Ripple (XRP), Solana (SOL), and Cardano (ADA), saw even more dramatic increases, with XRP jumping 30%, SOL rising 20%, and ADA skyrocketing over 50%. The announcement, made on Trump's Truth Social platform, highlighted the inclusion of these assets in the reserve, aiming to bolster America's leadership in the crypto industry.

While the market initially reacted positively, prices began to stabilize later in the day, with Bitcoin dipping below $93,000. The strategic reserve is part of Trump's broader plan to position the U.S. as a global crypto leader, a move that has reignited investor interest in digital assets.

Top Cryptocurrencies Rally After Strategic Reserve Announcement

FXStreet detailed the market's response to Trump's announcement, noting that Bitcoin rallied 9.53% on Sunday, reaching $93,000. Ethereum and Ripple followed suit, with gains of 14% and 35%, respectively. The announcement of the Crypto Strategic Reserve, which includes Bitcoin, Ethereum, XRP, Solana, and Cardano, was seen as a significant step toward enhancing the U.S.'s crypto dominance. Bitcoin's price recovery from a low of $78,258 earlier in the week to $94,270 on Sunday underscored the market's renewed optimism.

Analysts predict further gains if Bitcoin can maintain support above $90,000, with potential resistance at $100,000. Similarly, Ethereum and Ripple are poised for continued growth, provided they hold key support levels. The announcement has also sparked discussions about the broader implications for the crypto market and regulatory landscape.

Trump's Crypto Reserve Plan Boosts Market Confidence

Sky News highlighted the impact of Trump's executive order on digital assets, which includes the creation of a U.S. Crypto Strategic Reserve. The announcement led to a sharp increase in cryptocurrency prices, with Bitcoin rising over 11% to $94,164 and Ethereum climbing 13% to $2,516. Ripple surged 33%, while Solana and Cardano saw gains of 25% and 60%, respectively. The total cryptocurrency market added over $300 billion in value following the news.

Trump's plan aims to establish the U.S. as a global crypto leader, reversing the regulatory crackdowns seen under the previous administration. The first White House Crypto Summit, scheduled for Friday, is expected to provide further details on the reserve and its implications for the industry.

Sources: