Bitcoin experienced a spike in volatility on Monday, dropping by 5% to $85,000, after former President Donald Trump announced a proposed U.S. strategic Bitcoin reserve plan. The announcement has sparked mixed reactions, with some investors optimistic about Bitcoin’s growing legitimacy and others wary of potential regulatory challenges.
“The market is reacting to the uncertainty surrounding Trump’s proposal,” said a cryptocurrency analyst. “While it could boost Bitcoin’s status as a reserve asset, it also raises concerns about increased regulation.”
The volatility has impacted other major cryptocurrencies, with Ethereum and Solana also posting losses. Analysts predict continued market instability as investors weigh the potential implications of Trump’s plan.
Despite the short-term downturn, some experts believe the proposal could ultimately benefit Bitcoin by increasing its mainstream acceptance. However, others caution that regulatory scrutiny could create hurdles for the broader crypto market.
