- Bitcoin and other altcoins failed to move higher after Donald Trump declared that crypto would expand the dominance of the US dollar.
- Bitcoin and other altcoins like Avalanche, Dogecoin, and IOTA dropped on Thursday.
- Leads to canceling some of the gains following the Fed decision.
Market reacts for the Announcement
These coins dropped because Trump did not mention any concrete policy changes on Digital Asset Summit his administration would introduce. Before the statement, there were hopes that he would propose making crypto trading tax free in the United States.
Most significantly, the Securities and Exchange Commission has put an end to its legal wars against the crypto sector. Yesterday, the agency concluded its suit against against Ripple Labs which had run for years. It has also concluded other actions against businesses such as Kraken and Coinbase.
Market Reacts on the Summit Speech
In the aftermath of Trump’s address, Bitcoin and other cryptocurrencies experienced a temporary price rally as investors welcomed his renewed pro crypto message. The fervor was temporary.
The majority of traders had already factored in Trump’s pro digital assets position beforehand, and as a result, prices quickly retracted. Bitcoin initially surged but eventually settled closer to its pre speech price as the market waited for more concrete policy details.
Both cryptocurrency and stock prices initially experienced an upswing but fell back after doubts about the timing of future interest rate cuts led investors to step back.
This decline is indicative of the market’s responsiveness to interest rate policies, which affect liquidity and risk appetite in both fiat and digital asset markets.
Another reason for the decline is the expectation of the forthcoming triple witching, a quarterly event when stock index futures, stock index options, and stock options all expire on the same day. This time, more than $4.5 trillion in options contracts will expire, which increases the prospect of higher market volatility.
Traditionally, events like these have resulted in major price fluctuations across different asset classes, including cryptocurrencies. With the repositioning by traders in anticipation of this expiry, market mood is weak and hence sees elevated price volatility for both stocks and cryptocurrencies.
Also Read: Donald Trump to Speak at Digital Asset Summit 2025
