Bitcoin's recent price volatility has been influenced by US trade policies and plans for a national crypto reserve. The cryptocurrency saw drastic fluctuations, with realized volatility reaching 80% and prices dipping 30% from record highs. Despite bearish macro trends, Bitcoin temporarily surged past $90,000 following news of potential tariff rollbacks by the Trump administration. This potential policy change led to a brief rally in the crypto markets.
The market experienced a significant downturn, losing $1 trillion since December, reflecting a broader bear market sentiment. However, Bitcoin Cash notably surged by 30%, showing resilience amid broader market declines. Expectations are that Trump's pro-crypto policies, including a proposed national reserve, could drive future growth.
Major crypto assets like Ether and Solana have also faced substantial losses, with altcoins dropping over 50% from their peaks. As geopolitical factors continue to impact the crypto sphere, the sector remains poised for rapid shifts, underscoring the importance of monitoring policy developments. Overall, the interplay between US economic policy and crypto market dynamics remains a focal point for investors navigating this volatile landscape.
