On March 4, both the cryptocurrency market and the stock market faced downward pressure. According to QCP Asia analysis, although Trump’s announcement on Truth Social triggered a brief rebound in the crypto market, this optimism was quickly replaced by risk aversion.
Analysts believe that the reasons for the intensified market sell-off include Trump's re-mentioning of tariff policies on Canada, Mexico and China, which has caused investors to worry about escalating trade tensions and thus take financial risk-averse actions.
Analysis provided by QCPbroadcast | Source: Telegram
In addition, the inclusion of XRP, SOL and ADA in the reserve has also caused disagreements. The market has gradually been replaced by deeper doubts from the initial optimism. The market is concerned about the opacity of the source of funds for the reserve and the potential contradiction with DOGE's cost-cutting measures.