Crypto Market Slides After Trump’s Vague Crypto Remarks
On Thursday, Bitcoin and other altcoins experienced a downturn, wiping out some recent gains following the Federal Reserve’s decision. Bitcoin’s price fell to $84,000 from its recent high of $87,500. Ethereum dropped to $1,965, and other coins like Dogecoin, IOTA, and JasmyCoin saw declines of over 4%. The total crypto market cap slipped by 1.5% to $2.74 trillion.
Donald Trump’s speech at the Digital Asset Summit in New York City did not help the market.He praised crypto’s potential to strengthen the US dollar but offered no specific policy changes. His pre-recorded video failed to meet expectations, especially the hope for tax-free crypto trading in the US.
Despite this, the Trump management has made strides for crypto. They proposed a Strategic Bitcoin Reserve and a crypto stockpile of US-made coins. The SEC also ended its legal battles against the crypto industry, including a long-standing lawsuit against Ripple Labs.
Trump’s speech at the digital Asset Summit in New York City did not include the policy changes investors hoped for. The market had anticipated tax-free crypto trading proposals, but the president’s speech lacked concrete details. However, his administration has made important moves, like proposing a Strategic Bitcoin Reserve and ending the SEC’s legal battles against the industry.
Before the speech, there were expectations of tax-free crypto trading. Instead, the market reacted negatively. the SEC’s recent actions, such as ending its lawsuit against Ripple Labs, did not boost confidence. The SEC has also ceased legal actions against Kraken and coinbase.
Other factors contributing to the market’s decline include concerns about the Federal Reserve’s interest rate cuts and the upcoming triple witching event. This quarterly expiration of options contracts frequently enough causes market volatility.
