Cryptocurrency Market Plunges Amid Trump’s New Executive Order

·

The cryptocurrency market has experienced a sharp downturn following unexpected developments in U.S. policy, despite initial optimism around increased governmental support. On March 7, 2025, the White House hosted its first-ever crypto summit, where President Donald Trump announced federal backing for digital assets—yet markets reacted negatively due to unmet expectations. This article explores the latest regulatory shifts, market reactions, and major industry responses, including Coinbase’s expansion plans and growing IPO momentum in the sector.

Trump’s Strategic Bitcoin Reserve Announcement

At the historic crypto summit, President Trump declared an end to what he called the “war on crypto” under previous administrations. He emphasized bipartisan efforts to establish clear regulatory frameworks for Bitcoin, digital assets, and blockchain innovation. A day earlier, on March 6, Trump signed an executive order creating a strategic Bitcoin reserve, directing the U.S. government to halt the sale of its existing holdings—reportedly over 200,000 BTC—and preserve them as part of national financial strategy.

However, the absence of any provision for active accumulation from the open market disappointed investors. Many had anticipated ongoing government purchases to boost demand and stabilize prices. Instead, the lack of buying intent led to a rapid sell-off.

👉 Discover how global policy shifts are reshaping crypto investment strategies.

“This is the most disappointing outcome this week,” said Charles Edwards, founder of Capriole Investments. “A reserve without purchases is symbolic but economically ineffective.”

Still, not all analysts were bearish. Matt Hougan, Chief Investment Officer at Bitwise Asset Management, viewed the move positively: “Establishing a national Bitcoin reserve significantly reduces the risk of outright bans and may inspire other nations to follow suit.”

Trump, once a vocal critic who labeled Bitcoin a “scam,” has dramatically shifted his stance. During his 2024 campaign, he pledged to make America the “Bitcoin superpower” and global hub for crypto innovation—a promise now being translated into policy.

Political Funding and Policy Shifts

Behind the scenes, political contributions from the crypto industry likely influenced this regulatory pivot. According to The Wall Street Journal, pro-crypto Super PACs contributed over $130 million to candidates across both parties during the 2024 election cycle. These funds supported lawmakers favorable to digital asset innovation, signaling strong alignment between industry interests and new administration policies.

Additionally, Trump launched his own tokenized asset—dubbed “Trump Coin”—before taking office. Though it briefly reached a $10 billion market cap, its value has since dropped more than 80%, reflecting broader sentiment volatility in meme-based digital assets.

Market Volatility and Mass Liquidations

In the days following the announcement, Bitcoin swung violently—from nearly $94,000 down to $81,600, then rebounding to $92,800 before settling around $86,000. The turbulence triggered massive liquidations across leveraged positions.

Data from Coinglass shows that within 24 hours:

Such extreme swings highlight the sensitivity of crypto markets to macro-level policy signals—even when those signals are only partially aligned with investor hopes.

Coinbase Announces Major Hiring Push

Despite the downturn, key players remain bullish on long-term prospects. Brian Armstrong, CEO of Coinbase, hailed the summit as a “historic day” for the industry. “We were under relentless regulatory pressure before,” he said. “Now, leadership is bringing crypto innovation back to America.”

Armstrong confirmed that Coinbase will hire 1,000 employees in the U.S. in 2025, citing improved regulatory clarity as the driving factor. The move underscores confidence in sustained growth and institutional adoption.

As of late 2024, Coinbase employed 3,772 full-time staff. With rising trading volumes and expanding product offerings, the company aims to solidify its role as a bridge between traditional finance and decentralized ecosystems.

Financial Strength and Analyst Confidence

Coinbase’s Q4 2024 earnings painted a robust picture:

Rosenblatt Securities initiated coverage with a “Buy” rating and a $305 price target—well above the current ~$214 level. Analysts cited favorable regulatory trends and increased institutional participation as key catalysts.

Moreover, the SEC recently dismissed its 2023 lawsuit against Coinbase—a development Armstrong called a “huge win” for the entire industry. Under a newly formed crypto task force, the SEC appears to be adopting a more collaborative stance toward digital assets.

👉 See how top exchanges are adapting to new regulations and scaling globally.

Tokenization and Future Innovation

Coinbase is also reigniting efforts to tokenize its stock (COIN) as part of a broader push to integrate blockchain into traditional capital markets. After halting a similar initiative in 2020 due to regulatory hurdles, CFO Alesia Haas stated that recent shifts create favorable conditions for launching security tokens.

“We believe regulators are now open to innovation,” Haas said at a Morgan Stanley TMT conference. The goal is to enable 24/7 trading, faster settlements, and greater accessibility through blockchain infrastructure.

Gemini’s Quiet Move Toward IPO

Adding to the momentum, reports suggest that Gemini, the Winklevoss-led crypto exchange, has secretly filed for an IPO with the SEC. The company is reportedly working with Goldman Sachs and Citigroup on the offering, aiming for a potential public debut in 2025.

Gemini joins several other major players—including Kraken and possibly Robinhood—in preparing for public listings. This wave could bring unprecedented transparency and institutional credibility to the sector.

Core Keywords

Frequently Asked Questions (FAQ)

Q: Why did Bitcoin drop after Trump’s crypto announcement?
A: Although Trump established a strategic Bitcoin reserve, the executive order did not include plans for active government purchases. Investors had hoped for ongoing demand support, so the omission triggered a sell-off.

Q: Is the U.S. government buying more Bitcoin?
A: No—current policy only prohibits selling existing holdings (~200,000 BTC). There is no mandate or funding for future acquisitions.

Q: How is Coinbase responding to regulatory changes?
A: With renewed confidence in regulatory clarity, Coinbase plans to hire 1,000 U.S.-based employees in 2025 and is advancing projects like stock tokenization and institutional product development.

Q: What caused recent crypto market liquidations?
A: High leverage combined with sudden price swings—from $94K to $81K in days—triggered automatic margin calls across futures and perpetual contracts, resulting in over $470 million in losses.

Q: Are more crypto companies going public soon?
A: Yes—Gemini has reportedly filed confidentially for an IPO, and others like Kraken are also expected to pursue public listings amid improving regulatory sentiment.

Q: Was Trump always supportive of cryptocurrency?
A: No—he previously called Bitcoin a “scam.” His shift began during the 2024 campaign, driven by strong support from pro-crypto donors and a strategic vision to position the U.S. as a global leader in digital assets.

👉 Stay ahead of regulatory changes and emerging opportunities in digital assets today.