Oh no, the crypto market is down and keeps dipping even after a small recovery. A series of unfortunate events, including statements and actions by Argentina President Javier Milei, have contributed to this fall. Milei and Hayden Davis with LIBRA did us a reverse Midas touch and liquidated even big retail players.
Today, the crypto market saw a notable decline linked to activities in Argentina. The market was shaken partly by President Milei’s involvement in LIBRA, he endorsed the token just for investors to see it collapse shortly after. This ripples across the global crypto market, leading to a dip in various altcoins.
MILEILIBRA
(Image source)
Milei’s Endorsement Affects LIBRA Value
LIBRA gained attention after President Milei’s endorsement and saw its market cap free-falling from $4.4 billion to $70 million in a flash. An insider, Hayden Davis, who was associated with the launch of LIBRA, admitted in an interview that he and other insiders had made profits amounting to approximately $110 million.
Today’s crypto market decline has affected several participants, with reports emerging of significant losses among big investors.
• bought LIBRA for $4.9m
• sold for $350k
• PNL: -$4.5m in 5 hoursRIP pic.twitter.com/WoktQZdZJv
— Aporia (@0xaporia) February 15, 2025
Argentina’s ongoing struggle with economic stability, characterized by high inflation rates and its falling Pesos, has made it a significant player in crypto. The nation has one of the highest volumes of crypto transactions globally, with $85.4 billion worth of transactions in the last year before February 2025. This high engagement with crypto is due to citizens seeking alternative financial systems, especially with Milei’s endorsement.
The involvement of insiders like Hayden Davis in LIBRA raised concerns about market manipulation. Davis admitted to using non-public information to trade, which clearly violates securities law. Moreover, the strategy of ‘sniping’ or buying large amounts at the launch to influence price action was openly discussed, leading to a market cap crash due to insufficient liquidity after insider’s heavy sell-offs. This manipulation resulted in a loss of trust among retail investors, contributing to the market’s decline.
Warren Buffett once said, “It takes 20 years to build a reputation and five minutes to ruin it”. This quote talks about the long-term damage that short-term gains through unethical practices can cause, and it resonates with Milei and LIBRA’s insider actions, which affected the market terribly.
The Darkest Hour is Just Before the Dawn: The Bull Run Continues On
Events heavily influence today’s downturn in the cryptocurrency market in Argentina, showcasing a complex interplay of economic policy, insider trading, and market dynamics. While the immediate impact has been negative, historical patterns suggest that such downturns could be the calm before the uptrend storm.
After the Bitcoin halving event in April 2024, the market is still in a long period of consolidation and minor corrections, typically leading to a bull run.
Here’s the 2017 bull run chart for context. pic.twitter.com/bpkrj2DFsr — Michael Saylor ⚡ Founder of MicroStrategy (Parody) (@Saylorsatsire) January 18, 2025
The historical trends provide a backdrop for understanding the current market dynamics. Remember, downturns can be part of a larger cycle.**
