Bitcoin Drops 11% as Trump's U.S. Reserve Disappoints Traders

Bitcoin Drops 11% as Trump's U.S. Reserve Disappoints Traders

Bitcoin fell over 11% to $82,237 after traders reacted negatively to President Trump's Strategic Bitcoin Reserve, which will be funded with seized BTC rather than direct government purchases. The executive order, signed last week, directs a full accounting of the government’s 198,109 BTC holdings, valued at $17 billion, but does not authorize new acquisitions.

The White House framed the reserve as a “digital Fort Knox,” ensuring that no taxpayer money is spent on Bitcoin accumulation. However, analysts like Nick Ruck of LVRG Research noted that some investors were “disappointed” by the lack of active buying, which had been expected to provide price support.

Bitcoin’s volatility remains elevated at 58%, its highest level since December, reflecting continued market uncertainty. Unlike last year, when BTC surged on hopes of a pro-crypto Trump administration, its price has fallen 15% in the past month, hit by a broader risk-off sentiment and Trump’s new tariffs sparking an equities sell-off.

The market reaction suggests that the reserve’s long-term impact on Bitcoin adoption is still unclear. Some analysts believe the selloff reflects traders taking profits after BTC’s December all-time high of $108,000, while others argue that expectations for government accumulation had been overestimated.

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Solana Community Divided Over Token Emissions Proposal

Solana developers are debating SIMD-0228, a proposal that would adjust token emissions based on staking participation instead of a fixed schedule. Supporters argue that “smart emissions” could reduce inflation, boost DeFi activity, and strengthen Solana’s economy. Key figures like Anatoly Yakovenko and Chris Burniske have backed the change, calling the current system “inefficient and outdated.”

However, opposition from validators like SolBlaze warns that reducing emissions could lower staking participation and weaken network security. Solana Foundation President Lily Liu also criticized the plan, calling it “half-baked” and lacking predictability for investors. Voting is set to begin Friday evening during Solana Epoch 753, with the outcome expected to be closely contested.

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Gemini Moves Toward IPO After SEC Drops Investigation

Crypto exchange Gemini, founded by Cameron and Tyler Winklevoss, has confidentially filed for a U.S. IPO, according to a March 7 Bloomberg report. The company has enlisted Goldman Sachs and Citigroup to oversee the listing, though no final decision has been made. The move follows the SEC dropping its investigation into Gemini, clearing a major hurdle for the firm.

Gemini also settled a separate $5 million lawsuit with the CFTC, removing another regulatory obstacle. The exchange joins Kraken, Circle, and Blockchain(dot)com, which are also considering public listings amid adjustments in U.S. crypto regulations. As firms prepare for IPO filings, analysts see this as a sign of growing institutional confidence in crypto markets.

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Ripple Co-Founder’s $150M XRP Theft Linked to LastPass Hack

A forfeiture complaint filed on March 6 revealed that the $150 million XRP theft from Ripple co-founder Chris Larsen was linked to LastPass’s 2022 security breach. Hackers accessed Larsen’s private keys stored in LastPass, exploiting stolen password vaults to siphon off funds. The revelation was flagged by blockchain investigator ZachXBT, who said the breach had been previously undisclosed.

The 2022 LastPass hack exposed unencrypted metadata for 25 million users, making crypto wallets a prime target. Security experts estimate over $250 million in crypto losses tied to the breach, with Larsen’s case being one of the largest. While Larsen confirmed the hack only affected personal accounts, he has yet to publicly comment on the government’s asset recovery efforts.

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Data of the Day

A March 7 report by River estimates that less than 4% of the global population currently owns Bitcoin, leaving significant room for growth. The U.S. leads in adoption at 14%, while regions like Africa lag behind at 1.6%. River calculated Bitcoin’s total addressable market, estimating that it has reached only 3% of its potential adoption.

Despite Bitcoin’s rising mainstream presence, adoption faces barriers such as financial illiteracy and price volatility. Developing nations often favor stablecoins over BTC, as they provide lower fees and price stability. At the White House Crypto Summit on March 7, U.S. Treasury Secretary Scott Bessent emphasized stablecoins’ role in preserving dollar dominance.

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More Breaking News

• Michael Saylor urged the US government to acquire up to 25% of Bitcoin’s supply by 2035, calling it a "perpetual source of prosperity."
• Kraken is preparing for an IPO as early as Q1 2026 after previously raising over $100M in a pre-IPO funding round.
• Brian Armstrong announced plans to hire 1,000 more US Coinbase employees in 2025, citing Trump’s pro-crypto stance as a key factor.
• Jito contributor Andrew Thurman proposed new JTO tokenomics, including a "recycling & rewards" model and potential token buybacks.
• El Salvador acquired 13 BTC since March 1 despite IMF pressure, maintaining its Bitcoin treasury strategy amid global regulatory scrutiny.
• Arkham Intelligence launched a new tagging system to track wallets of 950 crypto influencers, including Vitalik Buterin, Justin Sun, and Trump.

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