Trump’s policies create uncertainty within the cryptocurrency market.
The recent drop in Bitcoin’s price has led to significant losses for altcoins over the past 24 hours. As many cryptocurrencies plummet to all-time low levels, it is intriguing that this is happening while the first crypto-friendly U.S. president takes office. Trump’s second and final presidential term has brought unexpected challenges, and concerns about a looming recession seem to be largely ignored by his administration.
ContentsCrypto Market DeclineNdinga’s Insights and Predictions Crypto Market Decline
When he took office in January, there were high expectations for the resolution of regulatory issues surrounding cryptocurrencies. Naturally, this was anticipated to drive prices upward. While many legal disputes and investigations involving numerous crypto companies have been settled, a few notable cases like Ripple $2 remain unresolved but are expected to conclude soon.
However, prices have not surged. Why is this the case? Trump appears to be adopting an unprecedented tone in his speeches, imposing additional tariffs that could violate World Trade Organization rules. He is dragging the world into a global trade war, warning that without financial support, European Union countries will be left alone in a third world war.
While it feels like we are in the midst of a nightmare, the proposed tariffs are expected to come into effect by April. Many countries will be affected, raising concerns about a U.S. recession, which in turn is shifting investor expectations negatively. Ironically, it seems that Trump and his team are indifferent to these outcomes, and it is not surprising that risk markets are facing declines, especially with U.S. stocks dropping nearly 5% in a day.
Ndinga’s Insights and Predictions
Eliezer Ndinga, strategy manager at 21co, the parent company of cryptocurrency asset manager 21Shares, shared his views on the recent decline. He pointed to geopolitical tensions and concerns over corporate profit growth as sources of uncertainty driving investors toward less volatile assets, putting pressure on risk markets.
“Cryptos are usually at the top of the risk-off list, which is why they took a hit along with other high-growth investments.”
Last week, President Trump signed an executive order concerning Bitcoin $79,041 reserves and crypto stock. However, since it did not necessitate further purchases, it resulted in disappointment in the markets.
You can follow our news on Telegram, Facebook, Twitter & Coinmarketcap Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
