<\/p>\n \t\t\t\t\tPosted by African Examiner<\/a><\/span><\/p>\n \t\t\t\t\tBusiness News<\/a>, Latest Headlines<\/a><\/span><\/p>\n \t\t\t\t\tTuesday, March 4th, 2025<\/span><\/p>\n \t\t\t\t<\/span>\t\t<\/p>\n \t\t\t (AFRICAN EXAMINER) \u2013 Bitcoin\u2019s price plunged nearly 10 percent on Monday as an escalating trade war and uncertainty over creation of a US crypto reserve fund sent investors running from risk.<\/span><\/p>\n After jumping on US President Donald Trump\u2019s talk of creating a national cryptocurrency reserve, bitcoin and similar digital assets dove in the face of concerns it might not actually happen.<\/span><\/p>\n \u201cEverything is getting sold,\u201d Forexlive manager Adam Button said, adding: \u201cThere\u2019s a de-risking that\u2019s unfolding\u201d among crypto investors.<\/span><\/p>\n Late in the day, Bitcoin was down 9.47 percent at $85,321.69 each. There is more than a trillion dollars worth of bitcoin in the largest overall valuation in the crypto realm.<\/span><\/p>\n The second largest digital asset, ether, saw its price drop more than 15 percent.<\/span><\/p>\n Other major cryptocurrencies such as XRP, Cardano and Solana were down by almost 20 percent.<\/span><\/p>\n Weighing on cryptocurrency prices was Trump\u2019s confirmation of 25 percent tariffs on all products imported to the United States from Mexico or Canada, which have already promised to retaliate.<\/span><\/p>\n Button believes that concern about this trade war is compounded by worries about US economic growth, which many see weakening in the first quarter.<\/span><\/p>\n Cryptocurrency prices had climbed early Monday, buoyed by Trump the previous day naming five that could be used in a national strategic reserve fund.<\/span><\/p>\n Along with bitcoin and ether, Trump mentioned XRP, Cardano and Solana.<\/span><\/p>\n This reserve would be created by bringing in digital currencies already in US possession, mainly from seizures in court cases or assets of individuals or companies under sanctions.<\/span><\/p>\n Some in the industry have expressed reservations about the array of currencies considered.<\/span><\/p>\n The chief executive of leading US cryptocurrency exchange Coinbase felt that limiting the reserve\u2019s holdings to bitcoin \u201cwould probably be the best option.\u201d<\/span><\/p>\n \u201cIt\u2019s the simplest and there\u2019s the idea that it could be a successor to gold,\u201d Coinbase CEO Brian Armstrong said in a message posted on X.<\/span><\/p>\n After Trump talked up the idea of a cryptocurrency reserve \u201ceveryone started buying, then wondered if it was really going to happen\u201d, Button said.<\/span><\/p>\n Creation of such a reserve would have to go through the US Congress.<\/span><\/p>\n \u201cIt\u2019s one thing to tweet about it, but you need to pass legislation to make this happen,\u201d Button said.<\/span><\/p>\n \u201cAnd that\u2019s still a long shot.\u201d<\/span><\/p>\n Short URL<\/strong>: https:\/\/www.africanexaminer.com\/?p=101157<\/small><\/p>\n![](\"https:\/\/www.africanexaminer.com\/wp-content\/uploads\/2021\/02\/CYPTOCURRENCY-480x320.jpg\")
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