Trump just did it again. We’ve got a wild story about how one man’s words can send shockwaves through the crypto market.
This week, he caused a jaw-dropping $300 billion pump-and-dump-like volatility in the crypto markets.
Don’t do too high leverage
It all started when Trump announced a U.S. crypto reserve. The market skyrocketed like you know, an actua rocket, reaching the total market cap to over $3.2 trillion.
But hold on to your hats, fast forward to March 4, and those gains have vanished quicker than a magician’s rabbit.
The market took a hard nosedive, crashing nearly 14% to settle at about $2.82 trillion.
In just 24 hours, over 311,000 over-leveraged traders found themselves liquidated, losing more than a billion dollars collectively.
One tweet from Trump sent traders into a frenzy, and now they’re left picking up the pieces. Where’s the risk assesment? Who opened the positions?
“Trump pumped it with a tweet. Trump dumped it with his tariffs. All his doing. Sad but true.”
Power games
So what happened? Well, during a press conference, Trump announced hefty tariffs, 25% on imports from Canada and Mexico and raised tariffs on Chinese goods to 20%.
It’s like he flipped the switch from party mode to panic mode in record time. Traders quickly realized that getting these tariffs through Congress wasn’t going to be an overnight miracle.
Fear and greed
And let’s not forget Bitcoin, as it plummeted to an intraday low of $82,800, dropping almost 12% in just over a day.
The fear and greed index? Back in extreme fear territory. Ethereum didn’t escape unscathed either, it fell below $2,000 for the first time since November 2023.
Even those alts that were riding high on Trump’s crypto reserve announcement took a serious hit.
To top it all off, this crypto chaos closed a massive $10,000 gap in CME Bitcoin futures that had opened over the weekend when traditional markets were closed.
So here we are, witnessing another chapter in the dramatic days of crypto influenced by none other than Trump himself.
Have you read it yet? Australia says no to crypto reserves
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