- BTC, ETH, and DOGE suffered massive liquidations, while uncertainty over Trump’s Bitcoin Reserve order grew.
- Traders remained cautious amid market volatility, with Bitcoin’s dominance in the U.S. Reserve questioned
The crypto market is reeling from a fresh wave of uncertainty as traders digest new tariffs and Donald Trump’s unexpected Bitcoin [BTC] Reserve order.
Bitcoin has tumbled 4.16% to $81K, with Ethereum [ETH] and Dogecoin [DOGE] experiencing even sharper declines. While the executive order has fueled speculation, the lack of a clear funding plan has left investors wary, dampening hopes of a bullish breakout.
A mass crypto liquidation event
The market has experienced a sharp increase in liquidations, with Bitcoin, Ethereum, and Dogecoin being the most affected. Over the past 24 hours, total liquidations have amounted to $614.63 million, impacting more than 224,000 traders.
Bitcoin accounts for the largest share, with $236.87 million in liquidations, followed by Ethereum at $106.85 million.
Dogecoin has suffered the most among the top 10 cryptocurrencies, with $21.79 million in liquidations following a 13% price drop. The largest single liquidation order, valued at $32.09 million, occurred on Binance in the BTCUSDT pair.
Uncertainty surrounding Trump’s Bitcoin Reserve order and broader market conditions has left traders on edge, anticipating further volatility.
BTC, ETH, and DOGE struggle
Following this wave of liquidations, major cryptocurrencies are attempting to stabilize, but bearish pressure remains strong.
At press time, Bitcoin was trading at $81,273, struggling to regain momentum after its recent decline. The RSI sat at 35.38, signaling oversold conditions, which could hint at a potential relief bounce.
However, the downward trend remains intact, with strong resistance near $84,000. The OBV also showed weak buying pressure, indicating cautious sentiment among traders.
If BTC fails to hold above $80,000, further downside towards $78,000 could be likely. A break above $84,000 might shift momentum in favor of the bulls.
At the time of writing, Ethereum was trading at $2,061, showing a slight recovery but still in a downtrend.
The RSI at 35.81 indicates oversold conditions, hinting at a potential rebound. However, the MACD remained bearish, with the signal line below the histogram, suggesting continued selling pressure.
If ETH fails to hold $2,000, a further decline to $1,900 is likely. A breakout above $2,200 could turn the tide.
As of press time, Dogecoin was trading at $0.1708, recovering slightly with a 1.7% daily gain. However, it dropped 21% in the last week, indicating strong bearish pressure.
The RSI at 30.37 signaled oversold conditions, suggesting a potential bounce. OBV showed declining volume, reflecting weak buying interest.
If DOGE holds above $0.16, a short-term recovery is possible. However, failure to defend this level could lead to further downside toward $0.14. A breakout above $0.19 might signal bullish momentum.
Political resistance and Bitcoin’s dominance in the reserve strategy
Despite Trump’s efforts to include Cardano [ADA], Ripple [XRP], and Solana [SOL] in the U.S. Strategic Reserve, industry leaders maintain a Bitcoin-first approach.
Coinbase CEO Brian Armstrong and Real Vision’s Raoul Pal argue that Bitcoin is the most logical choice. Pal suggests a market-cap-weighted strategy instead of including altcoins.
Government disclosures reveal no holdings of ADA, XRP, or SOL, emphasizing the reserve’s Bitcoin-focused strategy. Rising skepticism adds challenges to the proposal, increasing uncertainty in the crypto market.