Once again, the crypto market found itself tumbling back into the abyss, like a wayward tumbleweed caught in a dust storm. The market capitalization took a nosedive, plummeting nearly 11% to a staggering $2.75 trillion, effectively erasing all the gains made on that fateful Sunday when President Trump decided to play Santa Claus with his crypto reserve announcement. But alas, the euphoria of Sunday faded faster than a mirage in the desert, with Bitcoin (BTC) and its motley crew of altcoins sliding back to their pre-weekend levels, as if they were trying to escape the harsh reality of the market.
Bitcoin, that once-mighty titan, slipped below the $90,000 mark, down almost 10% and trading at a mere $83,700. Ethereum (ETH), the ever-hopeful second fiddle, has seen its value decline nearly 15%, struggling to cling to the $2,000 threshold like a cat on a hot tin roof. Ripple (XRP) took a nosedive of almost 18% after its brief Sunday surge, while Solana (SOL) found itself down nearly 20%. And let’s not forget Cardano (ADA), which had danced past the $1 mark only to crash down nearly 24%, now trading at a paltry $0.811.
Even the likes of Dogecoin (DOGE), Hedera (HBAR), Chainlink (LINK), Stellar (XLM), Litecoin (LTC), Toncoin (TON), and Polkadot (DOT) joined the party of despair, all registering substantial declines as the market was gripped by a bearish sentiment that returned with a vengeance after Trump reaffirmed his plans to impose tariffs against our friendly neighbors, Canada and Mexico. Who knew a trade war could send crypto prices spiraling?
Bitcoin (BTC) Dips 10% As Crypto Reserve Euphoria Fades
Bitcoin, the once-unstoppable force, has been down nearly 10% over the past 24 hours, weighed down by the growing trade tensions and tariffs that have investors sweating bullets. The digital assets had surged after Trump’s remarks about a national cryptocurrency reserve, but the feasibility concerns about the plan triggered a sharp decline. BTC kept sliding until it slipped below $90,000, landing at $84,190. ETH, ADA, SOL, and XRP also joined the downward spiral. Forexlive manager Adam Button lamented,
“Everything is getting sold. There’s a de-risking that’s unfolding among crypto investors.”
The downturn began after Trump reaffirmed those pesky tariffs against Canada and Mexico, both of which have vowed to retaliate. Button believes fears surrounding an impending trade war were intensified by concerns over US economic growth, expected to slow during the first quarter. Who knew economics could be so dramatic?
Industry Leaders Not Happy With Inclusion Of ADA and XRP In Reserve
Crypto industry leaders were not exactly throwing confetti over the inclusion of XRP, ADA, and even SOL in the crypto strategic reserve. Experts questioned their inclusion, arguing that they lack the developer activity and decentralization that make BTC and ETH the darlings of the crypto world. Trump signed an executive order in January to explore a strategic digital asset reserve, with the language revolving around the potential creation of a digital asset stockpile. Trump is also set to host the inaugural White House Crypto Summit, where he’ll deliver remarks to crypto founders, CEOs, and investors. Sounds like a party, right?
Crypto Czar David Sacks will chair the summit. While the news sent the value of the assets in question skyrocketing, it was also met with heavy criticism. Castle Island Ventures General Partner Nic Carter stated,
“It’s not the job of the government to run an ersatz crypto hedge fund. It’s not their job to pick winners and losers.”
According to Harrison Seletsky, director of business development at digital identity platform SPACE ID, the inclusion of SOL and ETH makes sense because of their robust and growing developer activity. However, he added that ADA and XRP are virtually ghost chains compared to ETH and SOL, with the total value locked and stablecoin capabilities on XRPL and Cardano being negligible compared to other ecosystem players. He quipped,
“In my eyes, it somewhat delegitimizes the whole idea of crypto reserve assets like industry mainstays bitcoin, ether, and Solana.”
Two Prime Digital Assets CEO Alexander Blume called XRP, ADA, and SOL tech companies that happen to have a cryptocurrency, saying
Read More
- Cookie Run Kingdom: Shadow Milk Cookie Toppings and Beascuits guide
- Rick Owens Gives RIMOWA’s Cabin Roller a Bronze Patina
- “Tornado Cash’s TORN Token: Riding the Rollercoaster of Sanction Roulette!”
- EXCLUSIVE: Mrs star Sanya Malhotra recalls seeing Shah Rukh Khan for 1st time and it’s not on Jawan sets; ‘Mujhey ek mahina…’
- Roseanne Barr Has A Wild New TV Show About A Farmer Who’s ‘Saving’ America, And She’s Comparing It To The Sopranos
- The Weeknd’s ‘Hurry Up Tomorrow’ Billboard 200 Projections
- David Taylor Takes You on a Tour of His Aluminum Explorations
- Pop-Tarts and Krispy Kreme Kick Off 2025 With Collaborative Menu
- Australia implements sweeping ban on credit and crypto for online betting
- How To Wash Your Horse In Kingdom Come: Deliverance 2
2025-03-04 18:07