The price of Bitcoin suffered a significant drop of nearly 10% on Monday, closing at $85,321.69, as uncertainty over the creation of a cryptocurrency reserve fund in the United States accelerated the flight of investments.
Despite an initial surge fueled by comments from President Donald Trump about the possibility of establishing a national cryptocurrency reserve, the market soon reacted negatively due to the lack of guarantees regarding its implementation.
The recent confirmation of 25% tariffs on imported products from Mexico and Canada by Trump has also been seen as a determining factor in the fall of cryptocurrencies, generating an atmosphere of distrust and disinvestment.
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In addition to Bitcoin, Ethereum experienced a drop of more than 15%, while other prominent cryptocurrencies like XRP, Cardano, and Solana fell by nearly 20%. This decline reflects a notable shift in investor interest, which now shows an increasing aversion to risk in the current market context.
Trump’s proposal to create a national reserve fund that would include cryptocurrencies held by the government, originating from judicial confiscations or sanctioned assets, still requires Congressional approval.
In this regard, Brian Armstrong, CEO of Coinbase, suggested that linking the fund to Bitcoin could be the most viable option, considering it a possible successor to gold due to its simplicity.
The creation of such a fund remains a debated topic, and many in the industry have reservations about the variety of cryptocurrencies that could be included. However, there is still the possibility that interest in regulation and government backing could revitalize the market in the future.
