The crypto market just like the stock market, reacts to global shifts in trade and geopolitics. And right now, these are the dominant suspects per various sources, responsible for the flatlining of the crypto space:
1. Major shakeups erupting from U.S. domestic and foreign policy:
Policies being announced by the current U.S administration, especially with the imposition of tarrifs on trade partners has created a jittery atmosphere in which many businesses are likely shifting their assets and repositioning themselves for a potential meltdown (as is being predicted by various experts and trumpeted on major media).
2. The U.S. apparent shift from traditional economic and trade alignment has created a highly volatile situation for investors:
After the turn of events at the WH on Friday involving the U.S president, his Veep and their Ukrainian counterpart, it was clear that there is a shift as the U.S, Leader of the Free World no longer follows tradition in siding with it's allies. As such, TRUST which is key to safeguarding and guaranteeing security of investments is fast eroding in every sphere of business, owing to the sense of high unpredictability in U.S policy alignment.
3. Announcements that appear either manipulative or anti-crypto coming from notable figures within the Trump administration (Elon Musk and POTUS himself):
Within the past days, a message appearing to come from President Donald Trump's social media handle promoted some coins (XRP, SOL, ADA, ETH and BTC) sparked a brief rally for these coins, but it was not strong enough to start a bull run (as other events, like the slapping of tarrifs on Canada, China and Mexico overshadowed it). Also comments from Musk on investing in meme coins being "foolish" certainly contributed to putting a big dent on the market reaction in the crypto space.
In conclusion, if these issues do not find a quick resolution: a resolution that guarantees investors' confidence in the global economy and eliminates the idea of another economic recession being imminent, then the worse may yet come, as more traders and investors will continue to scramble to salvage their investments from being totally eroded.
NOTE: This is not financial advice. DYOR, as there is plenty of news out there right now.
