Crypto Market Downturn Amid Trump’s Mixed Policies and Macro Pressures
29.04.2025 15:18
During Donald Trump’s first 100 days in office, crypto prices experienced significant declines despite several supportive regulatory moves by the administration. The SEC ended lawsuits against major companies such as Uniswap, Coinbase, and Ripple Labs, signaling a step toward greater regulatory clarity for the crypto space. However, aggressive tariff policies and a renewed trade war with countries like Canada, Mexico, and China heavily impacted market sentiment, leading to a 14.7% drop in total crypto market capitalization—far outpacing declines in traditional markets like the S&P 500 and Nasdaq 100. Bitcoin and most altcoins have suffered, and while the overall market cap showed a modest recovery from $2.39 trillion to $2.9 trillion, underlying macroeconomic challenges persist. Additionally, the performance of decentralized exchange (DEX) volumes, record net inflows into Bitcoin ETFs, and contrasting trends in Ethereum ETFs highlight an environment of volatile investor sentiment. The rise in the stablecoin market and growth in Real World Asset tokenization add further complexity to the current market dynamics.
Bitcoin is experiencing downward pressure due to macroeconomic factors like the trade war initiated by Trump’s administration, despite some supportive regulatory moves. In the short term, increased investor uncertainty and negative sentiment are likely to depress prices, while long-term prospects may improve if pro-crypto policies sustain momentum.
Uniswap (UNI) may benefit from the positive impact of the SEC ending lawsuits against crypto companies, potentially easing regulatory fears. However, broader market declines driven by macro factors and trade tensions may counteract these gains, leading to cautious short-term outlook with moderate long-term potential if regulatory clarity persists.
Ethereum has been adversely affected as evidenced by ETF outflows and a notable price drop. The negative impact of macro factors combined with sector-specific pressures suggests short-term price weakness, even though any future regulatory improvements might offer some stabilization in the longer term.
Solana, like other altcoins, faces negative impacts from the overall market downturn caused by macroeconomic pressures and renewed trade tensions. The lack of direct supportive policies for SOL implies its price will likely be squeezed in the short term, with long-term recovery depending on broader market stabilization and investor sentiment improvements.
Sources
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