- Bitcoin dips near a $74,500 low, marking a new cycle low amid a global market downturn on Monday.
- Ethereum and XRP experience double-digit declines in the past 24 hours, with almost every crypto token in the top 30 facing a correction.
- Trump’s tariffs lead to a market crash, as ten analysts analyze the US President’s intentions regarding cryptocurrency.
Bitcoin (BTC) and altcoin valuations experienced a tumultuous day on Monday as traders absorbed the latest tariff news. Speculations ranged from a possible 90-day postponement of tariffs to Bitcoin’s price oscillating between a low of $74,500 and a high of $81,200 within just one day, culminating in a significant crypto market collapse for traders.
In the last 24 hours, Ethereum (ETH) and XRP have seen their values drop by nearly double digits.
Tariffs from Trump decimate crypto gains
Bitcoin remained steady around the $85,000 mark for several weeks prior to Trump’s sudden announcement. As the tariffs came into effect, global markets crashed on Monday, causing a downturn in cryptocurrencies, including Bitcoin, Ethereum, and XRP.
Following Trump’s announcement, which triggered a loss of 7% in overall crypto market capitalization within 24 hours, Bitcoin is currently hovering around support at $78,000. After briefly dipping below $1,500, Ethereum has rebounded above a crucial support level, while XRP is trading at $1.8710.
Derivatives traders are reducing their risk exposure, highlighted by a near 10% fall in open interest, which dropped to $91.19 billion on Monday. The market noted $1.61 billion in crypto liquidations over the last day, with Bitcoin’s market share rising slightly to 62.62%, according to data from Coinglass.
The future of crypto under the Trump administration?
Greg di Prisco, co-founder of M^0 Labs, a company focused on creating infrastructure for decentralized stablecoins, expresses skepticism towards Trump’s Strategic Bitcoin Reserve proposal.
Prisco commented on the influence of the Trump administration on the crypto landscape and noted:
“The significant departure from the previous administration is more than what the industry could have anticipated. The President has taken decisive action, and perhaps even more crucially, his influence on legislative progress is a key development for the sector. The stablecoin legislation moving through Congress will solidify the US’s competitive edge.”
Prisco also shared his top three predictions for crypto in 2025:
“I believe the GENIUS Act will eventually emerge as the principal legislation that gains support and may see approval, possibly in the second half of the year. We can expect traditional financial institutions to start rolling out tokenized products, inspired by Blackrock’s BUIDL. Additionally, stablecoins will continue to demonstrate their potential as a breakthrough use case for crypto, becoming integrated into mainstream fintech solutions.”
Sid Powell, CEO and co-founder of Maple Finance, perceives Trump’s decision to retain the US government’s Bitcoin holdings in a Strategic Reserve as eliminating approximately $17 billion in potential market selling pressure.
Although Powell doesn’t foresee direct Bitcoin purchases from the US government, he mentioned, “The administration appears to be focusing on innovative approaches to expand its holdings without direct expenses, such as leveraging profits from gold reserves or engaging in creative accounting. If Congress passes the proposed ‘Bitcoin Act of 2025,’ which involves acquiring 1 million BTC over five years through sales of Federal Reserve gold certificates, it might indicate a shift toward more aggressive acquisition strategies.”
The Maple Finance CEO anticipates a Bitcoin Arms Race, envisioning a critical moment for the US economy where the Trump administration competes with other nations looking to build their strategic crypto reserves and leads significant BTC acquisitions.
Anthony Anzalone, CEO and founder of Layer 1 blockchain XION, reflects on the latest market trends and Trump’s favorable stance towards crypto, stating,
“While market performance may not reflect this fully, the impact has been remarkable. Beyond eye-catching announcements, we’re observing a substantial shift in regulatory sentiment from a focus on enforcement to one that supports innovation, highlighted by the appointments of crypto-savvy individuals in key agencies. This will have a lasting significance. Moreover, there has been a commitment to upholding core crypto principles, and actions like the Treasury Department’s engagement with industry stakeholders suggest a collaborative approach to future policy-making.”
Matteo Greco, a digital asset research analyst at Fineqia, shared insights on Trump’s crypto reserve initiatives and his expectations for the sector in 2025.
“Should the crypto reserve be implemented formally, we might anticipate an official audit soon to confirm and publicly disclose the precise number of BTC owned by the US government. Furthermore, there could be discussions on ways for the government to acquire more BTC without harming taxpayers. From a developmental perspective, with stablecoins and tokenization gaining traction, the focus might shift to establishing a clearer regulatory framework for real-world assets (RWAs) in the US. This would not only catalyze investment in the sector but also reinforce the US dollar’s position as a predominant settlement asset in the digital transaction landscape. Given this trajectory, it wouldn’t be a surprise to see the government encouraging tokenization initiatives actively.”