Crypto Market Faces $440 Million Loss Despite Regulatory Moves and Bitcoin Reserve Clarity

🔹 Crypto market capitalization shrinks by $440 million in a week
🔹 Bitcoin Reserve announcement fails to spark bullish sentiment
🔹 Trump warns of short-term economic challenges due to policy shifts

Crypto Market Dips to $2.61 Trillion Amid Uncertainty

The global cryptocurrency market continued its downward trajectory last week, shedding $440 million in market capitalization. As of Monday, the total market cap stands at $2.66 trillion, reflecting ongoing volatility and cautious investor sentiment.

Despite the much-anticipated announcement of a U.S. Strategic Bitcoin Reserve, the market failed to react positively. Instead of triggering a bullish rally, the revelation that the U.S. would not sell its existing or confiscated Bitcoin led to further market corrections.

Adding to the uncertainty, former U.S. President Donald Trump’s remarks on economic policies heightened fears of short-term financial strain. In an interview with Fox News, Trump acknowledged that while his trade and fiscal policies aim to build a stronger future, they could inflict short-term economic pain.

Mass Liquidations and Market Panic Continue

The overall crypto market cap dropped from $3.11 trillion to $2.61 trillion between Monday and Sunday, resulting in a sharp $440 million decline.

📉 Key Market Data:

• Total Market Cap: $2.66 trillion (Monday)
• Weekly Loss: $440 million
• Total Crypto Liquidations: $3.64 billion (Coinglass data)

🚨 Major Cryptos That Suffered Double-Digit Declines:

• Bitcoin (BTC)
• Ethereum (ETH)
• Ripple (XRP)
• Solana (SOL)

Trump’s Policy Decisions Add to Market Volatility

Market analysts believe U.S. trade policies, a potential tariff war, and global economic uncertainty are keeping investors on edge. Last week’s heated Oval Office exchange between Trump and Ukrainian President Volodymyr Zelenskyy further fueled concerns.

Additionally, the much-hyped White House Crypto Summit left investors disappointed as expectations of a more proactive Bitcoin accumulation strategy failed to materialize.

🗣 Ian Balina, CEO of Token Metrics, shared insights with FXStreet:

“Many expected the Strategic Bitcoin Reserve to involve fresh BTC purchases. However, the U.S. simply confirmed that it will not sell or confiscate its existing Bitcoin holdings. While this is a positive step, it did not provide the bullish momentum the market was hoping for.”

What’s Next for the Crypto Market?

📊 Key Factors to Watch:

• U.S. economic data & Federal Reserve policy decisions
• Geopolitical tensions and trade war risks
• Bitcoin’s price action around key support levels

While Trump’s policies aim for long-term economic stability, the short-term uncertainty continues to rattle global financial markets. As crypto traders navigate this period of uncertainty, all eyes remain on BTC’s next major move.

💬 Do you think the market will recover, or are we headed for more downside? Let us know in the comments!

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