Bitcoin experienced significant volatility on Monday, dropping by 5% to $85,000, following former President Donald Trump’s announcement of a proposed Bitcoin reserve plan. The plan, which aims to create a U.S. strategic Bitcoin reserve, has sparked mixed reactions from investors and analysts.

“The market is reacting to the uncertainty surrounding Trump’s proposal,” said a cryptocurrency analyst. “While some see it as a positive step toward mainstream adoption, others are concerned about the potential for increased regulation.”

The volatility comes amid broader market uncertainty, with other major cryptocurrencies like Ethereum and Solana also posting losses. Analysts warn that the market could remain unstable as investors digest the implications of Trump’s plan and its potential impact on the crypto industry.

Despite the downturn, some experts believe the proposal could ultimately benefit Bitcoin by increasing its legitimacy as a reserve asset. However, others caution that regulatory scrutiny could pose challenges for the broader crypto market.