On Sunday, a noticeable increase was observed in the cryptocurrency markets following Trump’s announcement on social media. Bitcoin $94,429 traded slightly above previous levels, indicating a brief surge in market activity.
Market Fluctuations
However, shortly after the event, the gains in the crypto markets nearly vanished. Ether fell below its pre-announcement levels, marking a five-year low in the ETH/BTC pair. Other cryptocurrencies like Solana $150, Ripple
$2, and Cardano
$0.715455 also lost their partial gains, reverting to earlier levels.
QCP Capital, sharing insights on the market fluctuations, noted that the markets are maintaining relatively high volatility.
QCP Capital: “Crypto volumes are still relatively high, and both main branches continue to reflect a Put Skew until the end of March. VIX has also risen, indicating broader market unease regarding risk assets, particularly after the recent tariff increases by the U.S. government.”
The report highlighted an increase in risk perception among market participants.
Notable Statements
Losses were observed in stocks associated with cryptocurrencies. Companies like Core Scientific and Bitdeer experienced significant declines during the session.
Medical equipment maker Semler Scientific dropped 7.3% due to a Federal Investigation related to the marketing of their product, QuantaFlo. This investigation introduced uncertainty regarding the company’s operations, impacting stock performance.
Similar trends were evident in broader stock markets. Nasdaq fell by 1.1% and S&P 500 lost 0.8%, pressured by planned tariff news in the pre-market period. Chipmaker Nvidia also saw a 6.5% decline due to a lawsuit over U.S. export controls.
Market commentators provided insights into the effects of U.S. growth concerns and new tariff plans.
Jake Ostrovskis (OTC Trader, Wintermute): “Concerns about U.S. growth and tariffs effective tomorrow on China, Mexico, and Canada will be focal points directing stocks and interest rates.”
The statement indicated that tariff news and global economic uncertainties would affect markets.
Current market data shows that the impact of Trump’s social media announcement on cryptocurrency and related stock markets quickly diminished. Investors appear to be closely monitoring risk signals, while uncertainties in global economy and trade relations may lead to cautious behavior among investors.