- The total cryptocurrency market cap declined by over $440 million last week.
- The response to Trump’s announcement regarding the Strategic Bitcoin Reserve was unexpected.
- Donald Trump admitted that his policies might prompt short-term economic discomfort.
The total cryptocurrency market capitalization fell by more than $440 million last week, settling at $2.66 trillion on Monday. The market’s reaction to Trump’s announcement about the Strategic Bitcoin Reserve was not as anticipated, continuing its downward trend. Additionally, in a Sunday appearance, Trump acknowledged the potential for short-term economic challenges arising from his policies.
Crypto market capitalization decreased to $2.61 trillion
Throughout last week, the cryptocurrency market maintained its decline, plummeting from $3.11 trillion at Monday’s opening to $2.61 trillion by Sunday’s close, resulting in a $440 million loss in market capitalization.
Chart depicting total crypto market capitalization
This decline initiated a significant wave of liquidations, resulting in a total loss of $3.64 billion, as reported by Coinglass data.
Chart illustrating total liquidations. Source: Coinglass
This market crash was exacerbated by multiple factors, as major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Solana (SOL) experienced significant double-digit losses over the week.
Trump’s contentious discussion in the Oval Office with Ukrainian President Zelenskyy, along with the potential for new tariffs from the U.S., further fueled market uncertainties. The White House’s crypto summit and the announcement of a U.S. Bitcoin reserve elicited an unexpected market response.
In a special interview, Ian Balina, founder and CEO of Token Metrics, expressed, “The news regarding the Strategic Bitcoin Reserve didn’t align with market expectations. Many were hoping the Reserve would initiate purchases of new Bitcoin; however, it’s been indicated that they will not sell any of their existing or confiscated Bitcoin. While this is a positive development, it led to a sharp drop in Bitcoin’s price. Additionally, our Bitcoin market indicator continues to reflect a bearish sentiment and has not transitioned to a bullish phase despite these announcements.”
During a Fox News segment on Sunday, Trump acknowledged the possibility of short-term economic challenges resulting from his policies.
“When you look at China, they operate with a 100-year outlook … we tend to focus on quarterly results,” Trump noted. “What we are doing is establishing a foundation for the future.”