Bitcoin falls over 5% to $81,712 amid ongoing volatility following Trump’s Bitcoin reserve proposal

Bitcoin saw a significant decline on Monday as price volatility persisted following President Donald Trump's executive order to establish a strategic Bitcoin reserve for the United States.

The world's largest cryptocurrency fell over 5.47 per cent to $81,712, on March 10.

The reserve will be financed using bitcoins confiscated through criminal and civil forfeiture cases, with no plans for the U.S. government to purchase additional bitcoin. Following the strategic reserve announcement last Thursday, crypto prices fell as investors were disappointed by the lack of a more aggressive initiative.

On Monday, other cryptocurrencies also experienced declines. As of 9:43 a.m. Singapore time, both Ether and XRP had dropped approximately 7.5%.

“Bitcoin's recent price action, despite the fluctuations, signals the resilience of the market. The excitement generated by Trump's executive order and the announcement of a US-based crypto reserve shows growing institutional interest and recognition of the value of digital assets,” said Avinash Shekhar, Co-founder & CEO, Pi42.

What lies ahead?

According to experts, cryptocurrency market is expected to witness short-term volatility, however, trend likely to remain positive.

“While short-term volatility is expected in any emerging market, the overall trend remains positive, with Bitcoin and other cryptocurrencies continuing to attract attention from both retail and institutional investors. This evolving landscape offers great potential, and with each regulatory development, we're one step closer to widespread adoption and a more stable future for crypto,” Shekhar added.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.