The financial markets often evolve to the rhythm of political decisions, and the universe of cryptos is no exception. This Sunday, Donald Trump rekindled the attention of investors by announcing that his Crypto reserve project would include several major assets, including XRP, Solana and Cardano. At first, Bitcoin seemed absent from this list, which sowed doubt about the position of the former president towards him. A quick adjustment then corrected the shot because it claims that Bitcoin and Ethereum would obviously be part. This turnaround sparked a peak of optimism and a prices, but the enthusiasm was short -lived. But in less than 24 hours, the market turned. In question, the growing concerns around the customs tariffs that Trump plans to impose, which revives the fear of economic instability.
The Trump effect: from hope to disillusionment
Donald Trump's intervention on cryptos first caused a renewed optimism among investors. Indeed, on Sunday March 2, 2025, the American president said that the United States would constitute a crypto reserve, and specifically quotes the XRP, Solana and Cardano. This announcement quickly increased the lessons, and the Bitcoin reached $ 94,000 in the euphoria of the moment. However, the initial absence of BTC in this list sowed the trouble. To dispel any ambiguity, Trump published a second message where he specified: “And, obviously, the BTC and the ETH, as well as other value cryptos”.
This change in tone has generated unusual volatility. Speculators took advantage of this climb to make rapid profits, which caused a brutal correction as soon as the announcement has blurred. In the process, Ethereum fell to $ 2,192, the XRP fell to $ 2.47, while the Sola crypto contracted at $ 148. Dogecoin, which was not even mentioned in the reserve project, also collected a reverse, and displays a loss of 9 % in 24 hours. This sudden drop was aggravated by an influx of liquidations on the derivative market. According to Coinglass, more than $ 661 million in positions have been liquidatedincluding 517 million in long positions.
The impact of economic fears and trade tensions
If Trump's announcement was a volatility catalyst, it quickly got away with much more tangible economic concerns. The Crypto market has followed the trend of traditional stock market indices, in particular the Dow Jones, the S&P 500 and the Nasdaq, all in decline Faced with inflation prospects and trade tensions. In addition, one of the trigger elements of this correction is the announcement of new price increases against Canada and Mexico, scheduled for Tuesday. In addition, there are commercial restrictions on China, which even further fuels uncertainty.
Faced with this tense climate, institutional investors have reduced their exposure to risky assets, which led to a wave of sales on bitcoin and altcoins. In parallel, Nvidia, one of the leaders of the artificial intelligence market, saw its action plunge 6 % into one day, which underlines a general withdrawal of technological and speculative values. These signals reflect increased market distrust in the face of a possible return to protectionist policies, which could slow growth and weigh on the liquidity of financial assets, including cryptos.
At $ 83,933, Bitcoin has a drop of 6 % over 24 hours, as is the entire crypto market that sinks into the red. Ethereum, Solana and Cardano undergo significant declines, while mass liquidations further weaken the situation. This lower movement underlines the sensitivity of cryptos to political and macroeconomic decisions, which informs their status of highly speculative assets.
The question remains: will the markets find their momentum or sink into a new phase of instability? Everything will depend on the evolution of trade tensions and the real impact of the measures announced by Trump. If the pricing policy is hardened, the markets may extend their correction. On the other hand, a appeasement of tensions could allow cryptos to find their upward trajectory. Until then, investors will have to deal with extreme volatility, like a sector where the slightest political signal can reverse the trend in a few hours.
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