Market Overview
Major cryptocurrencies, including Cardano (ADA), Ripple (XRP), and Solana (SOL), witnessed a steep decline of 21% on Tuesday, completely reversing the gains made during a recent surge. This reversal follows President Donald Trump’s announcement regarding the establishment of a U.S. crypto strategic reserve, which previously sent the prices skyrocketing.
Key Points:
- The initial excitement saw these cryptocurrencies rise as much as 60% but was short-lived due to profit-taking and cautious sentiment in the equity markets.
- Trump’s announcement was expected to boost the legitimacy of cryptocurrencies and attract institutional investment.
“Despite various pro-crypto deregulation initiatives and supportive policies still in play, investors now view these digital assets as risk investments closely linked to the performance of the U.S. stock market,” Kevin Guo from HashKey Research commented in a recent message.
Recent Developments
- Trump’s recent tariff announcements on imports from Canada, Mexico, and China have further impacted the crypto market, leading to an increased sell-off.
- The upcoming White House Crypto Summit is anticipated, with investors hoping for more clarity on future policies regarding the crypto market.
With Bitcoin now trading at $84,000, having dropped 9% over the past 24 hours, and Ethereum also declining by 12%, the market sentiment remains cautious as traders await further developments.
