The cryptocurrency market has lost momentum following the euphoria that began when US President Donald Trump announced a broad cryptocurrency strategy that extends beyond Bitcoin. Investors and industry leaders expressed concerns about the inclusion of lesser-known cryptocurrencies in the plan, leading to an initial surge followed by a sell-off.
Some Analysts Suggest That the Drop Came Due to the Addition of Assets Other Than Bitcoin to the Cryptocurrency Reserve
Trump yesterday announced his intention to integrate Ripple (XRP), Solana (SOL), and Cardano (ADA) alongside Bitcoin (BTC) and Ethereum (ETH) as part of his cryptocurrency agenda. The announcement initially sparked a surge in the assets in question, but optimism quickly faded as doubts arose about the viability of the plan and its underlying motivations.
After this, the cryptocurrency market experienced a sharp decline in the last hours. Ripple lost 11%, Solana 18% and Cardano 10%. Bitcoin also fell by about 5% to below $90,000, while ETH lost 10%.
The market turbulence comes amid broader concerns over Trump’s economic policies. The cryptocurrency sector experienced a heavy sell-off in February, increasing pressure on Trump, who enjoys industry support and significant financial backing from crypto-related donors. Even the Securities and Exchange Commission’s (SEC) easing of regulatory pressure on the sector has failed to stop the market decline.
Analysts suggest the sell-off could be linked to concerns about Trump’s tariff policies and plans to overhaul government programs that have investors on edge. “For a president who values being a market hero, the performance of risk assets last week was far from satisfactory. There was clearly a political calculation at play: Trump needed results before his cherished approval ratings began to slide,” QCP Capital, a trading firm, said in a report.
With the recent decline, there was a liquidation of $158 million in the cryptocurrency market in the last 4 hours, $128 million of which were in long positions.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/why-has-the-bitcoin-btc-price-fallen-yet-again-trading-below-90000/