What caused the price decline of Bitcoin and altcoins after the Trump crypto summit speech?
Bitcoin and numerous altcoins, such as Avalanche, Dogecoin, and IOTA, saw a decrease on Thursday due to choices made by the Federal Reserve, essentially eliminating some of their previous increases.
Ethereum (ETH) declined to $1,965, while Dogecoin (DOGE), IOTA (IOTA), and JasmyCoin (JASMY) decreased by more than 4%. The overall market capitalization of all cryptocurrencies reduced by 1.5% to $2.74 trillion. Bitcoin (BTC) dropped from its weekly high of $87,500 to $84,000.
Bitcoin and other altcoins did not rally further after Donald Trump asserted that cryptocurrencies would broaden the dollar’s dominance. He continued to elaborate on his encouraging feelings toward cryptocurrencies, delivering a statement in a prerecorded video for Blockworks’ Digital Asset Summit (a cryptocurrency conference) in New York City.
The prices dropped because Trump did not mention any particular policy changes his administration would implement. Before the statement was issued, there were expectations that he would suggest exempting cryptocurrency transactions from taxes in the United States.
The Trump administration has already taken considerable actions for the cryptocurrency sector. He also signed an executive order establishing a cryptocurrency reserve consisting of several American-made coins like Cardano (ADA) and Ripple (XRP). He has suggested creating a strategic Bitcoin reserve composed of seized coins.
Most importantly, the Securities and Exchange Commission has ended legal conflicts with the cryptocurrency industry. The agency ended its multiyear lawsuit against Ripple Labs on Wednesday. It also ended other lawsuits against companies like Kraken and Coinbase.
Bitcoin and altcoin prices decreased as the market reflected Wednesday’s Federal Reserve decisions. After an initial increase, stock and cryptocurrency prices retreated as worries about when the bank would lower interest rates remained. The Nasdaq 100 and S\&P 500 both decreased by about 0.25%.
So, to repeat, what caused the disappointing price action after Trump’s speech? It comes down to a deficiency of tangible policy proposals and the overshadowing impact of the Federal Reserve’s decisions on the wider market. Canary Capital Requests ETF, PENGU Value Increases
An additional element that might trigger a market downturn involves traders vigilantly observing the forthcoming “triple witching day,” during which options agreements exceeding $4.5 trillion reach their expiration. It’s widely recognized that stock and cryptocurrency markets tend to exhibit considerable volatility surrounding this quarterly occurrence, so prepare yourself!
