Just one day after the cryptocurrency market exploded thanks to President Donald Trump's announcement about the strategic crypto reserve, the prices of Bitcoin, Ethereum, and many other altcoins plummeted sharply. The cause is not only due to the 'hype' around the crypto reserve cooling down but also concerns about Trump's new tariff policies, which have shaken the financial markets in general.

Bitcoin Loses Momentum, Entire Market in the Red.

After hitting $94,000 on Monday morning, Bitcoin has now sharply declined to $87,300, equivalent to a 6% drop in the past 24 hours.

Not only Bitcoin, other coins mentioned by Trump in the crypto reserve plan – including Ethereum ($ETH ), Solana (SOL), XRP, and Cardano ($ADA ) – are all free-falling.

📉 Decrease in the past 24 hours:

  • Ethereum (ETH): $2,192 (-11%)

  • XRP: $2.47 (-11%)

  • Solana (SOL): $148 (-11%)

  • Cardano (ADA): $0.90 (-11%)

👉 Rare bright spot: Cardano and XRP are the only two coins in the top 10 that are still up over the past week, with Cardano up 24% and XRP just slightly down under 1%.

Dogecoin Also Can't Escape the Correction.

Although not on Trump's crypto reserve list, Dogecoin also benefited from the overall market optimism on Sunday. However, $DOGE has lost 9% of its value in the past 24 hours and is currently trading at $0.206.

Market Vaporizes $661 Million in One Day.

The sudden plunge has led to a wave of futures liquidation worth $661 million in the past 24 hours, according to data from CoinGlass.

📊 Notable numbers:

  • Bitcoin: $220 million liquidated.

  • Ethereum: $131 million liquidated.

  • Solana, XRP, and Cardano also make the top 5.

👉 Long positions suffer significant losses: Of the total $661 million liquidated, $517 million came from Long positions, meaning investors who bet that prices would continue to rise.

What is the Main Reason for the Market Decline?

📌 1. The effect #TrumpPump does not last long.
Initially, the market exploded after Trump announced that the US would reserve Bitcoin, Ethereum, Solana, Cardano, and XRP. However, this excitement only lasted in the short term, as investors realized there had been no actual actions from the Trump administration.

📌 2. Concerns over Trump's new tariff policy.
Today, global financial markets fell into a state of concern as Trump prepares to impose new tariffs on Canada, Mexico, and China. This could:
✔️ Increase inflation in the US.
✔️ Create pressure on risk asset markets, including crypto.

📌 3. US stocks are also affected.
Not only crypto, major stock indices in the US are also in the red:

  • Dow Jones, #S&P500 and Nasdaq both fell.

  • Nvidia stocks – the leading AI company fell more than 6% in one day.

Will Bitcoin Recover?

With the crypto market declining alongside stocks, it can be seen that investors are more concerned about the macroeconomic situation, rather than just focusing on news related to cryptocurrency.

📉 Bad scenario: If concerns about inflation and tariffs continue to rise, Bitcoin could retest support levels of $85,000 or lower.

🚀 Good scenario: If the market absorbs the shock from Trump, BTC could recover to $90,000 before continuing its long-term trend.

👉 Overall, investors need to be cautious with short-term volatility and monitor the next moves of the Trump administration. #anhbacong