In the last 48 hours, the market has experienced significant swings, and its main ambassador, of course, has been Donald Trump — whose words move the market like a puppet.
💸 As I
mentioned yesterday, the key event was his announcement about creating a strategic crypto reserve and signing an executive order on digital assets.
According to this order, the Presidential Working Group will be responsible for forming the crypto reserve, which will include BTC, ETH, XRP, SOL, and ADA.
So, how did it all start...
🔤 After the inauguration, we saw many statements about various tariffs — this clearly became FUD for financial markets, and for crypto in particular.
But on February 28, the crypto summit was announced, which will take place on February 7, and the market responded with some local positivity. This was followed by a kind of warming-up week for the crypto push.
We’ve already seen the news about the reserve, which pumped all the assets listed in it.
📥 But by the evening of yesterday, they had once again dropped following the announcement about the introduction of tariffs starting from April 2. As a result, in 24 hours, the crypto market lost $500 billion in capitalization.
Now, we can only wait to see what surprises the summit will bring. And perhaps we will be greeted with a few more big news items before it begins.
💬 Also, interestingly, Eric Trump commented on his father’s tweet:
«It’s time for traditional finance to catch up with the crypto industry, which operates 24/7. The world no longer lives 'from 9 to 5', and if banks and stock markets don’t change, they will disappear.»
He called the announcement of the creation of the crypto reserve on Sunday a brilliant move, as Wall Street was out of action.
🔖 Some large companies and individuals have also expressed that the market’s sharp reaction to Trump’s post is excessive.
«There is no clear plan to create such a reserve in the US, and the president’s actions are uncoordinated», said the TD Cowen team.
TD Cowen is an American investment bank with more than $11 billion under management.
😐 It’s also worth mentioning the case of the
«insider», who opened a long position with 50x leverage on Ethereum for $200 million an hour before the reserve announcement, and then quickly sold, making ~6.8 million. Coincidence? Probably not...
He also opened a position on BTC. To understand his risk:
• The ETH position was opened at $2,197, and the liquidation was at $2,149.
• The BTC position was opened at $85,908, and the liquidation was at $84,752.
At its peak, the position size reached $100 million in BTC and $150 million in ETH.
❕ In general, there are still more questions than answers. The real game will begin after the summit — we’ll be keeping an eye on the developments 🔥
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