The crypto market witnessed a massive drop on Tuesday, with major cryptocurrencies such as Bitcoin, Ether, and Solana seeing double-digit declines. Investors are confused about US President Donald Trump’s plan to create a crypto-linked reserve, which has increased the negative sentiment in the market. Apart from this, trade tensions between some big countries are also putting pressure on the crypto market.Bitcoin fell 9%, and Ether and Solana also suffered heavy losses.The price of Bitcoin, the largest cryptocurrency in terms of market value, fell by 9.20% to around $83,662 on Tuesday. At the same time, the second largest cryptocurrency, Ether, fell by 11%, and its price slipped to $2,094.Not just Bitcoin and Ether, but other cryptocurrencies like Solana also suffered heavy losses. Solana saw a decline of more than 15%, which shocked investors. This decline in the crypto market did not come suddenly, but due to many reasons, investor confidence has been shaken.Confusion over crypto reserve plan Even after the announcement of Donald Trump’s crypto reserve plan, there is no clarity on how the US government will implement it and what its purpose will be. Experts believe that this plan could be positive for the crypto market, but until clear guidelines come, investors will remain cautious.There are two possibilities regarding this plan of the Trump administration—either the government will take steps to strengthen crypto or it will make strict rules to control it.Due to this uncertainty, an atmosphere of FUD (Fear, Uncertainty, and Doubt) has been created in the market. Trade tensions increased difficulties. Another major reason for the decline in the crypto market is global trade tensions.Recently, there has been tension again in trade relations between China and the US, due to which investors are running away from risky assets. Cryptocurrencies are still considered a volatile investment, so whenever uncertainty increases in the global market, cryptocurrencies see huge fluctuations.Apart from America, strict rules are being made regarding crypto in Europe and Asia too. In India too, the government is preparing to introduce new taxes and regulations on crypto, which may affect investor sentiment.Speaking on this topic, Anish Tripathi said, “This decline in the crypto market may be temporary. Many big investors hope that as soon as the Trump administration clarifies its plan, the market may stabilize. However, this is a challenging time for small investors.People investing in cryptocurrencies need to keep an eye on market fluctuations and avoid taking any major decisions without proper research. In short, Trump’s crypto reserve plan and trade tensions have caused a huge drop in the cryptocurrency market. Until there is complete clarity on this plan, investors will remain cautious.”
Reporting to True To Life News