In December, with Donald Trump’s presidential seat, a great optimism was dominated by the crypto world. Prices rose rapidly with the expectation that the new administration would ease the regulatory pressures in Washington and that corporate capital will flow to the market. However, this rise did not last long.

In the last two months, the market value of $ 1 trillion was lost and investors rapidly withdrawn from the market due to increasing uncertainties. Bitcoin depreciated 15 %in the last seven days and Ethereum was 21 %. Since Trump’s oath ceremony on January 20, Bitcoin’s total loss has reached 25 %. Petr Kozyakov, CEO of Mercuryo, summarized the current situation as follows:

The Trump effect is completely evaporated and the crypto markets moved to extreme fear mode.

Some investors think that the sector is of speculative madness. Bitcoin Layer-2 Network’s Founding Partner Dom Harz made the following comment:

We hypnotized with price increases, breast coin madness and media shows. We forgot to build the main purpose of the crypton, that is, to build accessible financial systems for everyone.

According to experts, Trump did not only affect the crypto currency market positively

One of the biggest elements that shook the crypto market was economic and monetary risks. The Trump administration threatened to implement customs tariffs up to 25 %to Canada, Mexico and the European Union. Although he promised to take this step during the 2024 election campaign, it was inevitable that these policies would negatively affect the markets. As we have quoted as kriptokoin.com, this development has been reflected in the crypto currency market.

The concern of investors is that these customs duties can increase inflation by increasing consumer prices. The markets of the US Federal Reserve (FED), the possibility of keeping or even increasing interest rates at a level of 4.5 %, the markets made the markets even more anxious.

Can Bitcoin drop to $ 69,000?

Bitcoin has fell below $ 79,000 and is said to be a decline. Arthur Hayes, the manager of Maelstrom and the crypto phenomenon, predicts that Bitcoin may decline to $ 70,000.

James Tledano, Coo of Unity Wallet, Crypto Wallet, expressed his frustration to Trump with the following words:

“The promise is great, but reality can result in disaster. He gives it with one hand, takes it back with the other. But it seems to not understand that both hands are connected to the same body. ”

In addition, Standard Chartered analysts predict that the price of BTC may drop to $ 69,000.

There are positive signs for the crypto money market

In spite of everything, investors also draw attention to some positive developments. The US Securities and Stock Exchange Commission (SEC) began to withdraw many regulatory investigations launched during the Biden administration.

During the election campaign, Trump said that he would end SEC’s “regulation with sanctions” policy and apparently steps are being taken in this direction. In addition, leading crypto companies – Coinbase, Andrelesen Horowitz, Ripple and Winklevoss Brothers – Trump and Republican candidates made millions of dollars.

BREAST COIN scandals damaged the reputation of the market

However, these steps, which satisfied crypto investors, remained in the shadow due to Memecoin projects supported by President and First Lady.

SEC, said in a statement on Thursday, Memecoins can not be accepted as an investment instrument, more collection can be evaluated, he said. However, the total market value of these projects has exceeded $ 60 billion.

Although the Memecoin craze seems to harm the seriousness of the crypto industry, some entrepreneurs think that it may be useful in the long run. Jack Land, the growth director of the Solana -based metawealth platform, commented:

The task of the web3 sector is to focus on the development of projects and technologies related to the real world.