Bitcoin and other digital currencies will be included in the US Crypto Strategic Reserve, US President Donald Trump has said.
“I will make the United States the crypto capital of the world,” he wrote on his social network Truth Social on Sunday.
Trump issued an executive order on digital assets, which ordered him to work on the creation of such a reserve. Along with bitcoin, it will include such cryptocurrencies as Ethereum, XRP, Solana, and Cardano.
In this case, bitcoin and ether will become the “heart of the reserve”.
Bitcoin fell by 2.1% to $92,358 thousand by 10:03 a.m. on Monday, according to Coindesk. After Trump’s statements the day before, the world’s most popular cryptocurrency rose in price by more than 10%. Over the past year, its value has jumped by 36.4%.
The bitcoin exchange rate continues to decline sharply, with the cryptocurrency dropping below $80 thousand during trading for the first time since November last year.
Bitcoin fell by 3.9% to $80,150 thousand by 14:35 on Friday, according to Coindesk. Earlier in the session, quotes fell to $78.239 thousand. Over the past month, the world’s most popular cryptocurrency has fallen in price by 21%.
The bitcoin rate rose above $109 thousand on the day of the inauguration of US President Donald Trump, hoping that the new administration would be more favorable to digital assets. However, in the absence of specific measures to support the sector, cryptocurrencies fell along with other global markets.
“Bitcoin has dropped like a stone amid investor exodus from risky assets, which has rocked financial markets,” said Hargreaves Lansdown analyst Suzanne Streeter. – “The euphoria in the cryptocurrency market was closely linked to the general enthusiasm of investors, and when it declined, there was nowhere to hide.
The bitcoin rate set a new record on Monday, rising above $109 thousand before the inauguration of US President-elect Donald Trump.
During the election campaign, the politician publicly spoke in support of the cryptocurrency market, and traders expect him to ease regulations in this sector.
On Monday, the price of bitcoin rose to $109,241 thousand, Barron’s writes. According to CoinDesk, as of 10:00 a.m., the rate is $107.617 thousand.
Last weekend, Trump and his wife Melania launched their own cryptocurrencies on the Solana blockchain.
The politician himself introduced his TRUMP memecoin on the X social network and on his own platform, The Truth Social, on Saturday. At one point, the capitalization of this cryptocurrency rose to $15 billion, but fell below $8 billion after the launch of the MELANIA memecoin on Sunday, which diverted some of the funds of crypto investors.
The total number of TRUMP memecoins is limited to 1 billion, with 200 million tokens available initially, according to the official website. 80% of the memecoins are owned by CIC Digital, a subsidiary of the Trump
Organization, as well as Fight Fight Fight Fight LLC (corresponding to the Trump campaign slogan “Fight, fight, fight!”), in which CIC Digital is a co-owner.
CIC Digital used to sell Trump’s NFTs and campaign merchandise.
The bitcoin exchange rate reached another historical high the day before, exceeding $106 thousand. As of 9:42 a.m. on Monday, bitcoin rose by 1.9% to $105.11 thousand, according to Coindesk. On Sunday, the cryptocurrency rose to $106,491 thousand. Bitcoin’s growth has been going on for seven weeks in a row, the highest since 2021. The rate is supported by expectations of a favorable cryptocurrency policy under the Donald Trump administration. According to FactSet, since his election as US president, bitcoin ETFs have raised $9.3 billion. The next key level for this cryptocurrency is $110 thousand, MarketWatch reports.
The bitcoin exchange rate rose above $81 thousand for the first time on Sunday and continues to grow after Donald Trump’s victory in the US presidential election, MarketWatch reports.
Traders hope that Trump will ease regulations on cryptocurrencies, as he has publicly spoken in support of the development of this sector.
Bitcoin rose by 2.8% to $81,241 thousand during trading on Monday, according to Coindesk. Over the past week, the world’s most popular cryptocurrency has risen by 14%, with the increase over the past month exceeding 25%. Its rate has more than doubled in a year.
In addition to the victory of their candidate in the presidential election, the Republicans are approaching full control of Congress, the Financial Times notes.
Although the final result of the House of Representatives elections has not yet been confirmed, the Republicans are on the verge of taking control, which “will allow the new administration to implement supportive policies for digital assets shortly after Trump takes office,” according to Standard Chartered analysts.
“We expect positive changes early on in the administration,” including ‘changes at the Securities and Exchange Commission that will lead to a more lenient regulatory stance on digital assets,’ said Jeff Kendrick, head of digital asset research at Standard Chartered.
“Bitcoin, one of the riskiest assets, is experiencing a surge in popularity,” said Eswar Prasad, professor of economics at Cornell University. – “Regulatory clouds are dissipating. Financial conditions are becoming looser, and the macroeconomic outlook for the US continues to look bright.”
“America is going to go down the road to economic freedom,” said Brian Armstrong, CEO of Coinbase Global.
Ethereum, the second most popular cryptocurrency in the world, has risen by almost 20% over the past month and by 52% over the year. At the same time, it fell by 0.9% to $3,149 thousand during trading on Monday, according to Kraken.
The bitcoin exchange rate is falling sharply on Monday amid a global sell-off in risky assets.
Bitcoin fell by 10.8% to $52,827 thousand by 12:25 Kyiv time, according to CoinDesk. Over the past five sessions, the cryptocurrency has lost more than 21% of its value, although it has added almost 26% since the beginning of the year.
The Ether exchange rate fell by 15.3% to $2,330. This is a record drop since 2021.
The Japanese stock index fell by 12.4% on Monday, the fastest pace since October 1987, and futures on the US stock index Nasdaq Composite are down 4.2%.
The collapse of risky assets is caused by growing fears of a recession in the United States after weak statistics released last week. Goldman Sachs analysts now believe that the probability of a recession in the US economy in the next year is 25% instead of the previously expected 15%, and markets see a 60% chance that the Federal Reserve will hold an extraordinary meeting this week and cut its key interest rate by 25 basis points.
“The market is in a panic mode,” said Grace Chen, head of the Bitget cryptocurrency exchange.
