Bitcoin, Ethereum, and XRP Face Carnage

Bitcoin, Ethereum, and XRP are experiencing significant losses in response to Trump’s policies, with the total crypto market cap down to $2.784 trillion.

Bitcoin’s correlation (BTC) with the S&P 500 is 0.75 over 30 days, indicating that it’s behaving similarly to U.S. equities. The steep correction in crypto aligns with the first fifty days of Trump’s administration.

Table of Contents

• Why is crypto losing while Trumpism wins?
• Crypto market crash, pre and post-election performance of Bitcoin, Ethereum, XRP
• Bitcoin, Ethereum, and XRP on-chain analysis
• Is it the end of the Bitcoin bull run?
• Expert commentary

Why is crypto losing while Trumpism wins?

U.S. stocks are slumping; the S&P 500 is down nearly 8% in the past month. A total of $4.5 trillion has been wiped out from the market. Crypto, typically considered a high-risk asset, has also declined as traders pull back due to risk aversion.

Despite the downturn, crypto market capitalization remains around 20% above its pre-election level. After Bitcoin hit a new all-time high above $100,000, Ethereum and XRP followed, but all three coins have since experienced declines of 15%, 28%, and 9% respectively over the past month.

Trump’s pro-crypto policies, including executive orders and announcements, have not sparked positive sentiment among traders. The Crypto Fear & Greed Index indicates that apprehension persists.

A Forbes report suggested that the success of Trump’s policies on digital assets will depend on various factors, including market expectations.

Crypto market crash, pre and post-election performance of Bitcoin, Ethereum, XRP

The crypto market is in decline after weeks of correction, as traders process Trump’s announcements. Bitcoin is currently at a crossroads, and future financial easing may drive demand for risk assets. Geopolitical tensions, however, continue to harm the crypto sector.

The support level of $80,000 for Bitcoin is critical; falling below it could push prices under $70,000. Ethereum is currently 30% below its pre-election level, while XRP has shown relative resilience, trading above its pre-election price.

Bitcoin, Ethereum, and XRP on-chain analysis

Profits have been realized by Bitcoin and XRP traders, while Ethereum traders show signs of capitulation. The open interest in derivatives for these tokens has been declining, indicating a loss of interest.

Is it the end of the Bitcoin bull run?

Some analysts believe that Bitcoin may still be in a bull run despite recent corrections. Historical data suggests averages for corrections do not indicate the bull run’s end.

Expert commentary

Commentary from experts reveals escalating market volatility due to geopolitical and macroeconomic pressures. Analysts suggest that while capitulation can precede stabilization, ongoing uncertainties present challenges for the crypto market.

> Disclosure: This article does not constitute investment advice and is for educational purposes only.