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| Crypto Markets crashed $200 billion on Trump’s Silence about Cryptocurrency |
Over $200 Billion Wiped from Crypto Markets Amid Trump’s Silence
The cryptocurrency market faced a massive sell-off after Donald Trump was officially sworn in as the 47th president of the United States. While many investors and analysts expected the former president to acknowledge the growing digital asset industry, Trump’s speech made no mention of cryptocurrency.
This unexpected omission triggered a rapid market downturn, leading to over $200 billion in losses within hours. Bitcoin (BTC) and numerous altcoins suffered sharp declines, causing widespread liquidations and panic across the crypto space.
Bitcoin Drops Below $101K Amid Volatility
Bitcoin, the leading digital asset, saw extreme price fluctuations during the inauguration ceremony. Prior to the event, BTC was trading comfortably above $107,000. However, as the ceremony began, Bitcoin’s price plummeted by over $5,000, briefly falling below $102,000.
The flagship cryptocurrency attempted to recover, climbing back to $105,000 during Trump’s speech. However, as soon as it became evident that crypto would not be a topic of discussion, BTC nosedived again, hitting a low of $100,500.
This decline represents a major setback for Bitcoin’s recent rally, which saw it surge past $110,000 earlier in the month. The market’s reaction underscores the influence of political events on digital asset prices, especially in the U.S., where regulatory uncertainty continues to loom.
Altcoins See Even Bigger Losses
While Bitcoin’s drop was significant, many altcoins suffered even heavier losses. Some of the biggest losers in the past hour include:
- Trump’s Official Meme Coin – Down over 20%, struggling to stay above $40 after previously peaking at $70 earlier in the day. The asset has faced strong competition and criticism, especially after Melania Trump launched a rival coin.
- SPX, FARTCOIN, HBAR, WIF, LINK, AAVE, WLD, TIA, BONK, and more – These altcoins have all plunged more than 6% within the last hour.
- Total Market Cap – The overall cryptocurrency market capitalization fell from $3.850 trillion to $3.6 trillion during the crash.
This widespread decline indicates a broader market reaction to Trump’s silence on crypto. Many traders had hoped for a bullish statement or policy direction from the new administration, but the lack of acknowledgment fueled uncertainty and panic selling.
Mass Liquidations as Market Nosedives
The rapid price drop led to a surge in liquidations across major exchanges. According to data from CoinGlass:
- Nearly 400,000 traders were liquidated in the past 24 hours.
- Total liquidations surpassed $200 million in the same timeframe.
Such high liquidation numbers suggest that many traders were caught off guard, likely holding leveraged positions in anticipation of a positive crypto-related announcement. Instead, the market suffered a significant setback.
What’s Next for the Crypto Market?
While the immediate reaction has been overwhelmingly bearish, the long-term outlook remains uncertain. Trump has previously made mixed comments about cryptocurrencies, at times criticizing Bitcoin while also expressing openness to blockchain innovations.
Market participants will now closely monitor the new administration’s stance on digital asset regulations, taxation, and adoption. Any new developments, executive orders, or regulatory changes in the coming weeks could further impact market sentiment.
Additionally, Bitcoin’s next halving event, expected in April 2025, could serve as a potential catalyst for renewed bullish momentum. However, in the short term, traders may need to brace for continued volatility.
Final Thoughts
Trump’s failure to mention crypto during his inauguration speech triggered a significant sell-off, erasing over $200 billion from the market. Bitcoin fell below $101,000, and altcoins suffered even bigger losses. Liquidations soared, affecting nearly 400,000 traders.
While uncertainty remains high, investors will be watching closely for any policy announcements from the new administration. The crypto market’s next moves will largely depend on regulatory clarity, macroeconomic factors, and upcoming technological advancements in the blockchain space.
For now, traders and investors should exercise caution, manage risk effectively, and stay informed about political developments that could impact digital assets.
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