Imagine waking up on a Sunday and coming across the President of the United States, Donald Trump, announcing on his social media the creation of a Strategic Cryptocurrency Reserve, highlighting altcoins such as Ripple (XRP), Solana (SOL) and Cardano (ADA)? In a matter of hours, the asset shot up to an impressive 48%, in this case ADA.
Not satisfied, Trump returned to social media to state that, in addition to the aforementioned altcoins, Bitcoin (BTC) and Ethereum (ETH) would be at the top of the list of this strategic reserve. The market reacted with euphoria: BTC surpassed US$ 94 thousand, and ETH also registered a significant increase.
But what almost no one commented on is that this post did not refer to an approval of the strategic reserve. Everything is still being studied by the committee and there is no concrete forecast of when the government will start the project.
Even with this encouraging news, why did the market fall again?
After the initial enthusiasm, the cryptocurrency market has undergone a correction. BTC, for example, fell back to around $82,000. Several macroeconomic factors contributed to this volatility:
Trade War: The US imposed 25% tariffs on imports from Canada and Mexico, in addition to increasing tariffs on Chinese products to 20%. These measures will raise the costs of imported goods, putting pressure on inflation and affecting consumers' purchasing power.
Troop Withdrawal from Ukraine: The US government suspended military aid to Ukraine following a tense meeting between Trump and Ukrainian President Volodymyr Zelenskyy. This decision increased geopolitical uncertainty, negatively impacting global markets.
International reactions: Countries affected by the tariffs, such as China, Canada and Mexico, have vowed to retaliate with their own tariffs on U.S. goods, raising fears of a global trade war.
The short-term scenario is uncertain, but looking to the future, cryptocurrencies have everything they need to be part of a global financial scenario, and anyone who doesn't understand this quickly will be left out.
Posted Using INLEO