Cryptocurrency Market Retracts Amid Presidential Endorsement
Contrary to expectations, top cryptocurrencies faced a downturn on Thursday, despite President Donald Trump’s positive stance on the industry at the Blockworks Digital Asset Summit. Bitcoin and Ethereum fluctuations underline the market’s intricacies amidst calls for regulatory changes.
Market Summary
By 8:30 p.m. ET, key cryptocurrencies exhibited the following performance:
- Bitcoin (BTC/USD): Decreased by 2.39% to $84,391.51
- Ethereum (ETH/USD): Fell by 2.45% to $1,987.94
- Dogecoin (DOGE/USD): Declined by 4.72% to $0.1692
Bitcoin surged above $86,000 initially but retreated markedly to $83,647.19, while Ethereum briefly surpassed $2,000 but settled back in the high $1,900 range, failing to hold onto early gains.
Expert Perspectives
In his speech, President Trump called on Congress to fast-track stablecoin regulations and reiterated the goal for the U.S. to lead in cryptocurrency. Despite this positive stance, the market did not respond in kind. Liquidations totaling over $187 million occurred in the past 24 hours, predominantly impacting bullish positions which accounted for $129 million.
According to CryptoQuant, a prominent on-chain analytics firm, the Bitcoin Bull Score Index dropped to a two-year low of 20, signaling a bearish trend. The firm highlighted, “Historically, Bitcoin experiences significant price surges only when the Bull Score exceeds 60,” indicating a challenging landscape for recovery under current conditions.
Nonetheless, Arthur Hayes, co-founder of BitMEX exchange, provided a more upbeat view. He noted the upward trajectory of the U.S. bank credit supply index, potentially tilting market conditions in a positive direction. Hayes remarked, “While uncertainties remain, the odds are increasingly looking optimistic.”
Market Response and Sentiment
The Crypto Fear and Greed Index reverted to “Fear” after briefly hitting “Neutral” due to adjustments in Federal Reserve policy. This unease is reflected in the global cryptocurrency market, which saw a 2.27% decline with a total market capitalization of $2.77 trillion.
Conversely, some lesser-known cryptocurrencies displayed resilience, with notable gainers in the last 24 hours including:
- XRP (up 9.53% at $2.52)
- Bonk (up 9.33% at $0.00001201)
- Sonic (up 8.33% at $0.5423)
Wrap-Up
While President Trump’s encouraging statements hint at potential regulatory advancements for the cryptocurrency sector, the market’s immediate response underscores broader apprehensions about price sustainability and investor sentiment. The recent downturn, coupled with low Bull Score metrics, portrays a challenging environment for major cryptocurrencies. Stakeholders will closely monitor liquidity trends and possible legislative shifts as barometers for future performance. With vigilance amidst cautious sentiments and selective opportunities, the upcoming cryptocurrency landscape’s trajectory will come into sharper focus.
