The prices of cryptocurrencies suffered a significant reflection during the American session, which led to a billion dollar liquidation between investors. Bitcoin decreased to less than $ 85,000, while famous coins such as Cardano (ADA), official Trump (Trump), Dogwifhat (WIF), and virtual (virtual) protocol decline by more than 20 %.
The encryption is disrupted amid strategic reserves and the news of the summit
These cryptocurrencies have crashed within a week that should be fine due to the recent news from the United States.
Donald Trump announced his plans to obtain strategic encryption reserves Which will include blue coins like Bitcoin and Ethereum. Other currencies made in the United States of America such as XRP, Solana and Cardano will also be included.
It was also crashed before the first encrypted currency summit scheduled on Friday this week. This summit will include some of the largest players in the encryption industry, including the Executive Executive Managers such as Gemini, Coinbase and UISWAP.
In theory, all this good news for Bitcoin and other altcoins should be. The main reason for the collapse in relation to this is that investors see Trump’s arduous task to create these reserves this year.
The American president is different from other countries such as China and Russia because he has no power. Instead, the main decisions in the House of Representatives and the Senate must be ratified.
While Donald Trump’s Republican Party controls the two councils, passing a sensitive movement to encrypt in the two councils will be difficult. This is because many actors oppose these coins.
Therefore, there is a possibility that the United States government will not get encryption reserves this year. If this happens, it is possible that you will involve bitcoin, which some legislators may experience.
Destroy fear and greedy index
Bitcoin and Cocoin, such as Cardano, Trump Coin, Dogwifhat, and Virtuals due to the high fear in the market. The fear and greed index of extreme fear was shattered from 24, while the encryption index moved to 25.
This increased fear explains the reason for the shattering of the US blue indicators such as the S&P 500, NASDAQ 100 and Dow Jones in the past few days. The NASDAQ 100 technology index fell by 2.65 % on Monday, while Dow Jones and S&P 500 fell by 1.48 % and 1.76 %.
This fear occurred due to Donald Trump’s decision to impose a tariff on major commercial partners such as Canada and Mexico. The general definitions of goods, such as steel and aluminum, have revealed.
Trump’s supported goal is to force these countries to help the United States in issues in immigration and drugs. However, its real goal is to attract investments in the United States and reduce the trade deficit.
Bitcoin and other cryptocurrencies were shattered due to the effect of these definitions. It will lead to high inflation in the United States, and the Federal Reserve is pushed to leave higher rates for a longer period.
Curd traders on side lines
Cardano and other altcoins such as Trump Coin, WiF and Virtuals Protocol were shattered with investors remaining largely on side lines. One of the possible reasons for this is that Bitcoin, which often dictates the movement of prices in the encryption industry, has formed a double plan, indicating more progress.
All of these factors have pushed many encryption investors to panic and others to stay on the side lines. A good example of this is in the ETF market where there are investment funds circulating in Bitcoin and Ethereum Asset In the past few days.
In addition, there is a concept of buying rumors and selling news. This is the position in which most cryptocurrencies such as Bitcoin and Cardano rose after Trump’s victory and then retreated after his inauguration.
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