$BTC

Why did cryptocurrencies suddenly collapse? The real reasons for the sharp drop**

Cryptocurrencies, such as Bitcoin and Ethereum, experienced a sudden collapse over the last two days (May 4-6, 2025), and this is due to several main reasons:

Quick reaction to Trump's announcement "the strategic reserve of cryptocurrencies"

American President Donald Trump announced a plan to create a strategic reserve for cryptocurrencies including Bitcoin, Ethereum, Cardano, and Ripple. However, the lack of details on funding and execution led the market to react negatively after an initial wave of purchases, resulting in a "sell the news" after "buying the rumors".