Bitcoin and Co. slipped into the red at the start of the week. Ethereum was hit particularly hard, with ETH falling back to price levels from the end of 2023. But the Trump effect is also fading away for Cardano, Solana and XRP. An overview.
A look at the crypto charts does not bode well, red numbers as far as the eye can see. Bitcoin (BTC), the leading currency, is struggling to hold on to the 80,000 US dollar mark with a weekly loss of 4 percent. The sentiment barometer for the crypto markets is once again at “extreme fear” and this is also reflected in the price developments of top altcoins. Whether Ethereum (ETH) or Solana (SOL), whether XRP (Ripple) or Cardano (ADA) – none of the popular cryptocurrencies manage to defy the downward trends on their own. They are all among the selected coins that were recently selected by US President Donald Trump for a state crypto reserve in addition to a Bitcoin reserve. We look at the details:
- The setbacks on the crypto markets are particularly noticeable for Ethereum. With current prices below 1,900 US dollars, ETH is back where it was last in November 2023. One reason: critical problems in tests for the Ethereum Pectra upgrade are piling up. Developer Marius van der Wijden reports a hack in the second testnet that has just been set up for the eagerly awaited upgrade, and Pectra will probably no longer be able to be activated for Ethereum in March as planned.
- Solana, Ethereum‘s main competitor, is trading at 123 US dollars after a weekly loss of 10 percent, a twelve-month low. Analysts note that the scandal surrounding the Solana meme coin LIBRA is having an impact and that capital is being noticeably withdrawn from the meme coin sector, which is very important for SOL. Since the beginning of the year, the capital deposited for decentralized finance under Solana has also halved – SOL seems to be running out of use cases.
- XRP is also suffering a weekly loss of 10 percent, but Ripple’s cryptocurrency is still holding on to just above 2 US dollars. This shows once again that XRP benefited most from Trump’s election victory; previously, prices well below 1 US dollar were the norm for three years. Planned changes in crypto regulations for US banks are not only beneficial for XRP, but also for RLUSD, Ripple’s still young stablecoin.
- Despite a weekly loss of 11 percent, Cardano is still just above 0.70 US dollars, defending at least a good portion of the gains that the US altcoin made after Trump’s election victory. But otherwise, little has been heard from Cardano recently, and the wait for meaningful uses for ADA continues.
One thing is clear once again: When Bitcoin weakens, the altcoins in the top ten are hit even harder. And with BTC, the Bitcoin Reserve ordered by Trump turned out to be a sentiment killer on closer analysis because it does not provide for any purchases. There are also no plans to buy the US crypto reserves, for which Trump named Ethereum, XRP, Solana and Cardano. Bitcoin is also suffering noticeably from the risks that Trump is taking for his trade policy with punitive tariffs. The leading US stock indices S&P 500, Dow Jones and Nasdaq all turned negative yesterday, Monday, after Trump did not rule out a recession for the US economy on Sunday and predicted a “transitional phase”.
Conclusion: Is President Trump gambling? Bitcoin and Co. react sensitively
We currently do not know exactly what Donald Trump will be planning for the next day – and this volatility, already known from his first term in office, is poison for the world’s largest economy, possible punitive tariffs fuel inflation and economic risks and even recession. Bitcoin is currently unable to live up to its image as “digital gold”, and the BTC ETFs have seen almost uninterrupted capital outflows for a month. The Ethereum ETFs are not doing much better. Solana, XRP and Cardano are hoping for ETF approval soon, but in the current market situation, false starts are likely. No matter what you think of Trump – the influence of his monetary and economic policy cannot be ignored and currently does not bode well for Bitcoin and the crypto markets in general.
Image by WorldSpectrum from Pixabay
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