The crypto market has experienced a significant decline, with the total market cap dropping by 12.3% to $2.85 trillion, accompanied by $1.08 billion in liquidations over the past 24 hours.
This downturn follows an initial surge in response to President Donald Trump's proposal for a U.S. strategic crypto reserve, which included major cryptos like Bitcoin, Ether, XRP, Solana, and Cardano.
The market's initial optimism about Trump's reserve plan quickly turned to skepticism due to unclear implementation timelines and regulatory hurdles.
According to analysts, the market may have overreacted to the announcement, as an official legislative directive is likely months away.
The sell-off resulted in substantial liquidations. Bitcoin alone accounted for $398.49 million in liquidations, while Ethereum saw $209.73 million. This volatility was exacerbated by sudden price drops across major cryptocurrencies, including a $5,000 drop in Bitcoin's price within a short period.
Key figures in the crypto industry have expressed doubts about the plan. Anthony Pompliano and the Winklevoss twins questioned the inclusion of altcoins, while Peter Schiff accused the administration of market manipulation.
The crypto market is also facing external pressures, including a recent tariff announcement by Trump, which has further contributed to market instability.
The crypto market's recovery will depend on strong buying pressure and clearer regulatory actions. Until then, investors are likely to remain cautious.
The recent volatility and skepticism surrounding Trump's reserve plan highlight the challenges in stabilizing the market through such initiatives.
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Hey @justmythoughts, quite the rollercoaster, right? From sky-high hopes to "wait, what?" moments. It's like the market's playing a game of hot potato with our cryptos! 🤔 Clearer rules and a bit of patience might just be our best friends now. Keep sharing those insights! Following you for more crypto drama. Cheers! 🚀
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