News
Aniket Verma
·
March 7, 2025
·
Benzinga
Aniket Verma
·
March 7, 2025
·
Benzinga
Leading cryptocurrencies slipped on Thursday as President Donald Trump's executive order to create a strategic Bitcoin reserve became a "sell-the-news" event.
| Cryptocurrency | Gains +/- | Price (Recorded at 8:15 p.m. ET) |
| Bitcoin (CRYPTO: BTC) | -4.32% | $86,345.56 |
| Ethereum (CRYPTO: ETH) | -4.99% | $2,124.96 |
| Dogecoin (CRYPTO: DOGE) | -5.23% | $0.1920 |
What Happened: The leading cryptocurrency dropped from $90,000 to $84,979 in 40 minutes after the news became public before recovering to $86,000 as traders bought the dip.
Ethereum, the second-largest cryptocurrency, also dipped to $2,100 following an intraday high of $2,319.40.
The fall came after Trump signed an executive order establishing a Bitcoin reserve and a digital asset stockpile of other cryptocurrencies, both funded by forfeited assets held by the U.S. government. While the government may acquire additional Bitcoin, no extra purchases for the digital stockpile will be made.
About $537 million was liquidated from the cryptocurrency market in the last 24 hours, including $111 million in the last hour alone.
Bitcoin's Open Interest fell 2.58% in the last 24 hours, while the percentage of traders positioned short on the apex cryptocurrency increased to 51%.
Meanwhile, the Crypto Fear and Greed Index improved from "Extreme Fear" to "Fear" as of this writing.
Top Gainers (24-Hours)
| Cryptocurrency | Gains +/- | Price (Recorded at 8:15 p.m. ET) |
| Cronos (CRO) | +6.18% | $0.0853 |
| Movement (MOVE) | +5.60% | $0.4701 |
| Ethene (ENA) | +3.07% | $0.3619 |
The global cryptocurrency market capitalization stood at $2.82 trillion, following a decrease of 4.55% in the last 24 hours.
Following a brief reprieve, stocks resumed their correction on Thursday. The Dow Jones Industrial Average dipped 427.51 points, or 0.99%, to close at 42,579.08. The S&P 500 slipped 1.78%, ending at 5,738.52, while the tech-heavy Nasdaq Composite tumbled 2.61% to close the session at 18,069.26.
The selling came despite Trump postponing the enforcement of a 25% tariff on most Mexico imports for a month. The administration's trade measures and retaliatory action by key partners have rattled markets over the last month.
See More: Best Cryptocurrency Scanners
Analyst Notes: Bitcoin's long-term holders have taken advantage of the ongoing correction to fill their bags, according to widely followed cryptocurrency analyst, Ali Martinez.
"Long-term holders are accumulating! The supply held by long-term holders has increased by 85,000 BTC in the past month," Martinez said.
As for Ethereum, Martinez highlighted the significance of $2,200.
"As long as ETH stays above $2,200, the odds of a rebound increase, especially with the TD Sequential flashing a buy signal on the weekly chart," he remarked.
Well-known blockchain analytics firm CryptoQuant noted that stablecoin reserves on cryptocurrency exchange Binance have hit a new high.
"Historically, periods of rising stablecoin reserves on Binance have often coincided with, or even preceded, an increase in BTC prices and a broader upswing in the crypto market," the firm stated.
Photo by Avi Rozen on Shutterstock
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