By Bitcoin faced heightened volatility on Monday, falling by 5% to $85,000, after former President Donald Trump proposed a U.S. strategic Bitcoin reserve plan. The announcement has divided the crypto community, with some praising the move as a step toward mainstream adoption and others warning of potential regulatory risks.
“The market is reacting to the uncertainty surrounding Trump’s proposal,” said a cryptocurrency analyst. “While it could boost Bitcoin’s legitimacy, it also raises concerns about increased regulation.”
The volatility has spilled over into other 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 strengthen Bitcoin’s position as a reserve asset. However, others caution that regulatory scrutiny could create challenges for the broader crypto market.