Reason to trust
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Ad discliamer
Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.
The crypto market is experiencing a significant downturn this week, driven by growing concerns over a potential trade war and disappointment surrounding the US government’s crypto reserve plans. A recent interview with President Donald Trump, in which he hinted at the possibility of a recession, has further unsettled investors.
Crypto Market Plummets: XRP, Solana, And Cardano Follow Bitcoin’s Downtrend
Bitcoin, the flagship cryptocurrency, has fallen nearly 4% in the last 24 hours, dropping toward the $79,000 mark—a level not seen since mid-November. Ethereum (ETH), has taken a more significant hit with a 10% drop toward $1,860, price not seen since August.
Other established cryptocurrencies are also feeling the strain; XRP has declined by 4%, Solana (SOL) by 7%, and Cardano (ADA) by 8% as market participants continue to retreat from riskier assets.
The backdrop to this volatility includes the continuous aggressive tariff policies imposed by the new President Donald Trump administration towards countries like Canada, China, and Mexico.
These actions have sparked fears of a trade war, which could exacerbate inflation and increase the cost of imported goods. As a result, investors are gravitating toward safer investments, steering clear of the notoriously volatile cryptocurrency market.
In a Fox News interview over the weekend, Trump acknowledged that the aggressive tariff strategy could lead to a recession, describing the country as entering a “period of transition.”
This commentary has raised alarms among investors, particularly as Trump did not rule out the possibility of a recession occurring this year. Jake Ostrovskis, an over-the-counter trader at Wintermute, noted that the former president emphasized the likelihood of “short-term economic pain,” amplifying market anxieties.
Diminished Risk Appetite And Fed Rate Outlook
Adding to the uncertainty is the recent letdown regarding the White House’s plans for a national crypto reserve. Many in the crypto community had anticipated that Trump’s proposal would involve substantial government purchases of Bitcoin and other cryptocurrencies, potentially stimulating demand and boosting prices.
However, investors were disappointed when it was revealed that the government would refrain from making additional crypto purchases and would only retain cryptocurrencies seized from illegal activities.
Haider Rafique, the global chief marketing officer at crypto exchange OKX, expressed disappointment in the lack of immediate buying pressure from the formalization of a Bitcoin reserve.
“While establishing a Bitcoin reserve is a significant milestone, it does not create immediate buying pressure, disappointing those expecting aggressive accumulation,” Rafique stated.
This downturn in the crypto market also follows a broader trend of declining risk appetite among investors. Since the Federal Reserve announced in December that it would not implement as many interest rate cuts in 2025 as previously anticipated, the crypto market has lost approximately 25% of its total market cap.
The optimistic outlook that many had following Trump’s election in November has quickly turned sour, as macroeconomic factors weigh heavily on the market.
Featured image from DALL-E, chart from TradingView.com
Ronaldo is an experienced crypto enthusiast dedicated to the nascent and ever-evolving industry. With over five years of extensive research and unwavering dedication, he has cultivated a profound interest in the world of cryptocurrencies.
Ronaldo’s journey began with a spark of curiosity, which soon transformed into a deep passion for understanding the intricacies of this groundbreaking technology.
Driven by an insatiable thirst for knowledge, Ronaldo has delved into the depths of the crypto space, exploring its various facets, from blockchain fundamentals to market trends and investment strategies. His tireless exploration and commitment to staying up-to-date with the latest developments have granted him a unique perspective on the industry.
One of Ronaldo’s defining areas of expertise lies in technical analysis. He firmly believes that studying charts and deciphering price movements provides valuable insights into the market. Ronaldo recognizes that patterns exist within the chaos of crypto charts, and by utilizing technical analysis tools and indicators, he can unlock hidden opportunities and make informed investment decisions. His dedication to mastering this analytical approach has allowed him to navigate the volatile crypto market with confidence and precision.
Ronaldo’s commitment to his craft goes beyond personal gain. He is passionate about sharing his knowledge and insights with others, empowering them to make well-informed decisions in the crypto space. Ronaldo’s writing is a testament to his dedication, providing readers with meaningful analysis and up-to-date news. He strives to offer a comprehensive understanding of the crypto industry, helping readers navigate its complexities and seize opportunities.
Outside of the crypto realm, Ronaldo enjoys indulging in other passions. As an avid sports fan, he finds joy in watching exhilarating sporting events, witnessing the triumphs and challenges of athletes pushing their limits. Furthermore, His passion for languages extends beyond mere communication; he aspires to master German, French, Italian, and Portuguese, in addition to his native Spanish. Recognizing the value of linguistic proficiency, Ronaldo aims to enhance his work prospects, personal relationships, and overall growth.
However, Ronaldo’s aspirations extend far beyond language acquisition. He believes that the future of the crypto industry holds immense potential as a groundbreaking force in history. With unwavering conviction, he envisions a world where cryptocurrencies unlock financial freedom for all and become catalysts for societal development and growth. Ronaldo is determined to prepare himself for this transformative era, ensuring he is well-equipped to navigate the crypto landscape.
Ronaldo also recognizes the importance of maintaining a healthy body and mind, regularly hitting the gym to stay physically fit. He immerses himself in books and podcasts that inspire him to become the best version of himself, constantly seeking new ways to expand his horizons and knowledge.
With a genuine desire to become the best version of himself, Ronaldo is committed to continuous improvement. He sets personal goals, embraces challenges, and seeks opportunities for growth and self-reflection. Ultimately, combining his passion for cryptocurrencies, dedication to learning, and commitment to personal development, Ronaldo aims to go hand-in-hand with the exciting new era that the emerging crypto technology is bringing to the world and societies.
Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
