Bitcoin faced significant 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 divided the crypto community, with some investors optimistic about Bitcoin’s growing legitimacy and others concerned about potential regulatory risks.
“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 assess the potential impact of Trump’s plan on the crypto industry.
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 challenges for the broader crypto market.
