Crypto Market Sheds $440B Amid Bitcoin Reserve Uncertainty

The crypto market shed over $440 billion last week, with total market capitalization dropping to $2.66 trillion on Monday. Despite widespread anticipation that Trump’s announcement of a Strategic Bitcoin Reserve (SBR) would fuel a rally, the market continued its correction instead.

Adding to the uncertainty, Trump acknowledged in a Fox News interview on Sunday that his policies could cause short-term economic pain before delivering long-term benefits.

Crypto Market Falls to $2.61T, Triggers $3.64B in Liquidations

Last week’s market downtrend saw total crypto market capitalization plunge from $3.11 trillion on Monday to $2.61 trillion by Sunday, marking a $440 billion loss.

This decline sparked a wave of liquidations, with $3.64 billion in total wiped out, according to Coinglass data.

🚨 Major tokens saw steep losses:
📉 Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Solana (SOL) all suffered double-digit declines.

Geopolitical Tensions and Economic Uncertainty Weigh on Markets

The correction wasn’t solely driven by crypto-related news. Other key factors adding pressure included:

🔹 A tense Oval Office exchange between President Trump and Ukrainian President Zelenskyy
🔹 Concerns over potential new U.S. tariffs
🔹 Uncertain market reaction to the White House Crypto Summit

Despite Trump’s Bitcoin Reserve announcement, investor sentiment did not turn bullish, leading to further selling pressure.

Market Expectations vs. Reality: The Bitcoin Reserve Disappointment

Many traders had hoped the Strategic Bitcoin Reserve would mean government BTC purchases, which could drive prices higher. Instead, the announcement clarified that the U.S. would simply hold onto existing Bitcoin holdings, including confiscated BTC.

Ian Balina, CEO of Token Metrics, shared his take on the market reaction:

“The announcement about the Strategic Bitcoin Reserve is not what the market was hoping for. Many expected the Reserve to buy new Bitcoin, but instead, they stated they would not sell any of their existing Bitcoin or confiscated Bitcoin. While this is a positive move, it caused a sharp decline in Bitcoin’s price.”

Balina also noted that market indicators for Bitcoin remain bearish, signaling no immediate shift toward a bullish trend.

Trump Admits Short-Term Economic Pain in Fox News Interview

During a Sunday Fox News interview, Trump acknowledged that his policies could create short-term economic struggles, but framed them as part of a long-term strategy for stability.

“If you look at China, they have a 100-year perspective … we go by quarters,” Trump said. “What we’re doing is building a foundation for the future.”

For now, the crypto market remains in correction mode, with uncertainty surrounding economic policies, regulations, and geopolitical risks keeping investors on edge.