- Crypto market drops 10% despite Trump’s crypto reserve announcement.
- Bitcoin falls from $93K to $83K, while Cardano and Solana see over 15% declines.
- Investor concerns over tariffs and technical selling trigger a market-wide correction.
Crypto market is registering a massive slump, one day after skyrocketing following an announcement by former US President Donald Trump of a national crypto reserve.
In spite of the early positive sentiment, the top tokens such as Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA) have witnessed significant drops, sending traders scratching their heads at the sudden change in trend.
Crypto Market Drops After Short Rally
Bitcoin, having once crossed $93,000 upon the news, has lost close to 10% and stands at trading approximately $83,180 now. Likewise, Cardano, whose price spiked 75% thanks to inclusion in the reserve, has also plunged more than 20% to $0.81. Solana, Ethereum, and XRP.
Also lost more than 10% each in the last 24 hours, going in the opposite direction of gains registered the day before. The overall market lost more than $100 billion in value, with the entire crypto market cap falling to $2.8 billion.
Although Trump’s offer initially raised hopes, fears regarding international trade tensions, technical market forces, and investor sentiment have led to the decline. Trump’s comments regarding the imposition of fresh tariffs on Canada, Mexico, and China have spooked investors, leading them to move away from risky assets such as cryptocurrencies.
In addition, technical aspects like a wide CME futures gap have set off automatic sell orders, driving the decline. Institutional investors are also rebalancing their portfolios due to market volatility, pushing crypto prices even lower.
Short-Lived Hype and Market Correction
The original rally after Trump’s announcement is now being labeled as a quintessential “buy the rumor, sell the news.” Analysts point out that the uncertainty of the reserve structure, funding, and implementation is causing doubts.
Source: Santiment
Amid uncertainty, the cryptocurrency market remains volatile. Traders now eye the White House Crypto Summit awaiting additional information about the reserve to be unveiled there. The market holds its breath in the meantime.
