Sunday’s Trump Bump in Crypto

Sunday’s surge in crypto following President Trump’s announcement has quickly faded.

As of mid-afternoon U.S. trading, Bitcoin (BTC) is priced at $86,700, slightly above where it was before Trump promoted his U.S. crypto reserve plans on social media. Ether (ETH) has dropped below its pre-Trump level, with the ETH/BTC ratio hitting a five-year low at 0.025.

Other cryptocurrencies mentioned by Trump, such as Solana (SOL), Ripple (XRP), and Cardano (ADA), have lost a significant portion of their Sunday gains but remain above their levels before the announcement.

According to crypto trading firm QCP Capital, “Crypto volatilities are still relatively high, with both major cryptocurrencies reflecting a Put Skew until late March.” They noted that the elevated VIX indicates broader market unease, particularly in light of recent tariff escalations by the U.S.

Crypto stocks have also lost ground on Monday, with firms like Core Scientific (CORZ) and Bitdeer (BTDR) experiencing significant losses. Additionally, Semler Scientific (SMLR), known for its bitcoin treasury strategy, is down 7.3% amid a DOJ investigation over possible federal anti-fraud violations related to its QuantaFlo product, as reported by Stat News.

The broader stock market is also seeing declines, with the Nasdaq down 1.1% and the S&P 500 down 0.8% ahead of the anticipated tariffs on Mexico, Canada, and China. Notably, chipmaker Nvidia (NVDA) is down 6.5% following charges against three individuals for a U.S. export controls breach in Singapore.

“Concerns regarding U.S. growth and impending tariffs will be closely watched, influencing equities and interest rates,” stated Jake Ostrovskis, OTC Trader at crypto market maker Wintermute.