The surge in cryptocurrency values following Trump’s endorsement on Sunday has dissipated nearly as rapidly as it emerged.
As of mid-afternoon trading in the U.S., bitcoin (BTC) is trading at $86,700, slightly above its price before President Trump announced his upcoming U.S. crypto reserve plans via social media on Sunday.
Meanwhile, Ether is currently below its pre-Trump price, with the ETH/BTC ratio hitting a new five-year low at 0.025.
Other cryptocurrencies mentioned by Trump in relation to the prospective crypto reserve, including Solana (SOL), Ripple (XRP), and Cardano (ADA), have seen a significant portion of their Sunday gains reversed, although they remain higher than their levels prior to the president’s announcement.
“Crypto volatility is still relatively high, with both major cryptocurrencies showing a Put Skew until the end of March,” noted crypto trading firm QCP Capital in their communication to investors. “The VIX is also elevated, indicating overall market anxiety regarding risk assets, especially in light of the recent tariff increases from the U.S. administration.”
Crypto stocks have relinquished substantial early gains on Monday, with several, including Core Scientific (CORZ) and Bitdeer (BTDR), now experiencing significant losses during the trading session.
Semler Scientific (SMLR), known for its bitcoin treasury strategy, has dropped by 7.3% today following reports of a DOJ investigation for potential violations of federal anti-fraud laws related to its QuantaFlo product, according to Stat News.
The broader stock market is also experiencing declines, with the Nasdaq down 1.1% and the S&P 500 slipping 0.8% ahead of Trump’s impending tariffs on Mexico, Canada, and China. Chip giant Nvidia (NVDA) has fallen 6.5% after Singapore charged three individuals in connection with a U.S. export controls breach case.
“Concerns regarding U.S. economic growth and the looming tariffs on China, Mexico, and Canada set to take effect tomorrow will be at the forefront, influencing equities and interest rates,” commented Jake Ostrovskis, OTC Trader at the crypto market maker Wintermute.
