Bearish Sentiment Dominates
Market Wipeout: Major Cryptos Lose Gains
The crypto market has taken a sharp downturn, with Bitcoin dropping over 5% to $80,186 before stabilizing around $82,250. Ethereum, XRP, and Cardano have also erased their recent gains, showing increased volatility despite initial optimism following President Trump’s crypto reserve announcement.
?? Policy Shock: The Reality Behind the Reserve Announcement
The U.S. government's decision to establish a Bitcoin reserve using forfeited assets, rather than buying from the open market, disappointed investors. Many expected institutional backing to drive prices higher, but the absence of direct purchases has fueled skepticism, leading to mass liquidations.
?? Liquidity Drain: Meme Coins Take the Spotlight
Despite a $10 billion liquidity boost, much of the capital has flowed into meme coins instead of major cryptocurrencies. This trend has left assets like Solana and Dogecoin struggling, with the latter plummeting 11% in 24 hours.
?? The Road Ahead: Market Uncertainty Prevails
With over $616 million in liquidations in the past 24 hours, traders are closely watching upcoming U.S. economic reports. CPI and PPI data this week could determine whether crypto finds stability or faces another wave of selling pressure.