Bitcoin lost about 5% of its value and dropped to $78,300 during the week. The drop occurred after signing of the decree of the US President Donald Trump on the creation of the Strategic Cryptocurrency Reserve which will consist exclusively of confiscated assets, without new government procurement.
XRP, Ethereum (ETH), Solana (SOL), and Cardano (ADA) – tokens that Trump mentioned as possible candidates for the digital asset reserve, but that were not mentioned in Trump’s executive order – also fell in price.
Shares of cryptocurrency companies also suffered losses. In particular, Strategy Inc., Coinbase Global, and MARA Holdings fell by about 12-13%. The reasons were not only the general decline in the crypto market, but also concerns about the possible economic consequences of the Trump administration’s tariff policy.
The high-profile Crypto Summit with the participation of crypto industry leaders held in Washington on March 7 did not help improve market sentiment. Since the beginning of February, investors have withdrawn $4.4 billion from a group of US exchange-traded bitcoin funds that played a key role in the token’s record growth last year. By data CoinGecko, the largest crypto asset, has now fallen by 25% from its record high of $109,241, and the crypto market has lost more than a trillion dollars in market capitalization since its peak.
«Bitcoin may well fall to the $70k-$80k range in the coming weeks. Only when this tariff war is over and the Fed resumes rate cuts will the leading cryptocurrencies return to their previous historical highs», said Jeff May, COO of the BTSE cryptocurrency exchange.
Amid fears of a recession in the US, stock markets also suffered heavy losses:
- The Dow Jones fell by 516 points (-1.2%).
- The S&P 500 was down 130 points (-2.2%).
- The Nasdaq lost 648 points (-3.5%), hitting a six-month low.
In addition, Tesla’s shares plummeted by 11.8% and are now worth 50% less than their historical high due to concerns about Elon Musk’s political activity.
Source: Bloomberg