Donald Trump's announcement of a crypto reserve sparked intense reactions in the cryptocurrency market. However, subsequent events demonstrated how quickly euphoria can turn to disappointment.
Trump's Impact on Cryptocurrencies
On Sunday, March 2, 2025, US President Donald Trump announced the creation of a US crypto reserve, which would include assets like XRP, Solana, and Cardano. Initially, BTC was not on the list, raising some concerns among investors. However, Trump later clarified that Bitcoin and Ethereum would also be part of the initiative, leading to a rapid increase in market prices.
Economic Fears and Trade Tensions
While Trump's announcement initially drove the market upward, more significant economic concerns soon overshadowed this effect. Announced tariffs on goods from Canada and Mexico, along with trade restrictions against China, raised investor fears. As a result, many reduced their investments in risk assets, including cryptocurrencies.
The Future of the Crypto Market
The current state of the cryptocurrency market highlights its sensitivity to political and macroeconomic decisions. The market's future depends on the evolution of trade tensions and the actual impact of the measures announced by Trump. If tariff policy tightens, the market risks continuing its decline. Conversely, easing tensions could allow cryptocurrency growth to resume.
The cryptocurrency market remains highly volatile and susceptible to political decisions. Investors should be prepared for rapid changes in market sentiment, influenced by geopolitical factors.
