Key Takeaways
- Bitcoin’s price drop to below $83,000 resulted in a consecutive drop in the price of Dogecoin and Cardano by over 10%.
- The fall in price is due to the US government’s decision to not purchase Bitcoin from the open market to fund its strategic cryptocurrency reserve.
- Despite its current status, the prices of Bitcoin, Dogecoin, and Cardano are expected to rise in the future, though the exact timeline cannot be predicted.
Bitcoin prices dropped to as low as $83,000 on Sunday, March 09, 2025, affecting the entire cryptocurrency industry. Dogecoin and Cardano were the most affected altcoins, with their price dropping by over 10%. Even though Dogecoin and Cardano recovered slightly, the dip in their value persists. The price decline of Bitcoin comes amidst news that Trump has signed executive orders to collect Bitcoin as part of its strategic reserve. Dogecoin has been experiencing price volatility for some time, but Cardano has finally succumbed to the market trends after putting up brave resistance during the past few months.
Current Status Of Dogecoin And Cardano
The current price of Dogecoin is $ 0.174777, which has come down by 8.52% in the last 24 hours. Its 24-hour trading volume is $ 4.51B, while its market capitalization is $ 25.97B. The volume-to-market capitalization ratio of 0.1738 indicates that the asset has high liquidity in the market. The predominantly bearish price sentiment for Dogecoin is expected to continue in the long run, even though there are chances of a comeback based on the overall financial situation.
As far as Cardano is concerned, its current price is $ 0.746501. The ADA price has fallen by 7.41% in the last 24 hours. ADA’s price sentiment is currently bearish, while the Fear & Greed Index is showing 20 (Extreme Fear). The bearish sentiment is expected to persist in the long run. The market capitalization of ADA is $ 26.28B, while its 24-hour trading volume is $ 3.76B. The volume-to-market capitalization ratio is at 0.1431, which indicates that ADA tokens have a high liquidity in the market.
Reasons For Bitcoin’s Price Drop
Even after being included in the US strategic cryptocurrency exchange, the price of Bitcoin could not be kept high. While it was expected that the price would cross the $1,00,000 mark and continue to soar, the price has dwindled continuously over the past few days. This is because it has become clear that the US government will not purchase any Bitcoins from the market but will rely on the confiscated assets to constitute the strategic reserve.
The executive order signed in this regard by Donald Trump has clearly stated that the government will use the Bitcoins seized in criminal and civil asset forfeiture cases to fund the strategic reserve. The rise in the price of Bitcoin earlier was under the anticipation by investors that the US government would purchase huge amounts of Bitcoin from the open market. However, as the executive order came into existence, it became clear that no taxpayer money would be used to acquire any crypto assets for the strategic reserve.
It is currently unpredictable whether the price drop for Bitcoin will continue for long or if the asset will recuperate soon. The market analysts hope that the US government will acquire more Bitcoin from the market in the future, though there is no confirmation regarding this news. The US government has created separate task forces to devise ways to acquire Bitcoin from the market without burdening the taxpayers and ordinary people. However, any such decisions will take time to be implemented because they will require legislative action.
Another probable reason for Bitcoin’s price drop is the strict trade tariffs that the Trump administration has imposed on various countries. This has caused investors to withdraw huge amounts of money from exchange-traded funds. The government has also been cold towards interest rate cuts despite the growing inflation rates. This has resulted in more investors doubting risky investments such as cryptocurrencies. The recent hack on the Bybit exchange and the controversies and uncertainties surrounding memecoins have also contributed to the lack of investor trust in cryptocurrencies, adversely affecting their prices.
Also Read: Why Is Bitcoin’s Price Down Today? Will It Recover?
The Bottom Line
Trump’s announcement of the strategic cryptocurrency reserve is a positive step for regaining investor confidence in these digital assets. However, unless the other issues engulfing the market are solved, the extent to which assets such as Bitcoin, Dogecoin, and Caradno will recuperate cannot be predicted. Analysts expect a fair price performance to set in for these assets in the future.
