TL;DR
- Bitcoin (BTC), Ethereum (ETH), and other major cryptocurrencies, including XRP, Solana (SOL), and Cardano (ADA), continue to experience declines following a Sunday rally sparked by Trump’s announcement of a Crypto Strategic Reserve.
- The market rally fizzled as the lack of details in Trump’s proposal became apparent, causing concerns among traders and investors.
- Despite the initial optimism, the absence of clear information about the reserve has led to a significant drop in market value, with a total of $1.96 billion liquidated in the last 24 hours.
Cryptocurrency prices have been on a downward trend since the initial excitement surrounding US President Donald Trump’s announcement of a Crypto Strategic Reserve. The announcement was expected to solidify the US as the leader in the crypto world. However, the “buy the rumor, sell the news” phenomenon quickly took effect, leading to sharp declines in market valuations.
Trump’s statement emphasized that the reserve would help strengthen America’s position in the global crypto market, following what he described as “attacks” from the Biden administration. The reserve would encompass several major cryptocurrencies, including Bitcoin, Ethereum, XRP, Solana, and Cardano, with the goal of making the US the “Crypto Capital of the World.”
Lack of Details Creates Doubts
Initial enthusiasm sent prices soaring, but this optimism faded as the details about the reserve remained vague. Analysts pointed out that the lack of clarity regarding its structure and funding raised concerns. Dr. Sean Dawson, Head of Research at Derive.xyz, noted that the rally was short-lived, as markets tend to overreact to news before quickly recalibrating once the details or lack of them come to light.
Additionally, there were concerns about the inclusion of cryptocurrencies like Cardano, which hasn’t traditionally been considered a dominant player compared to Bitcoin or Ethereum. As a result, the market correction began swiftly, with prices for major cryptocurrencies plummeting over the past 24 hours.
Current figures show that Bitcoin (BTC) has dropped by 11.34%, now priced at $82,217. Ethereum (ETH) saw a decrease of 12.89%, falling to $2,063. XRP (Ripple) is down 14.20%, now sitting at $2.31, while Solana (SOL) and Cardano (ADA) have experienced the most significant declines, dropping 18.13% and 20.04%, respectively. Additionally, Dogecoin (DOGE) has decreased by 14.86%, now priced at $0.1897, while TRON (TRX) is down 4.42%, sitting at $0.2335. Binance Coin (BNB) has also seen a dip of 6.56%, now valued at $565.68.
The uncertainty surrounding the reserve has triggered a wave of liquidations, amounting to a total of $1.96 billion in the past 24 hours. With more details expected to emerge at the upcoming White House Crypto Summit, traders remain uncertain about the long-term impact of Trump’s proposal on the future of digital assets in the US.
