The broader crypto market thought that President Trump’s second term would set off a new era, marking a thorough bullish phase. It was going that way initially. BTC revived to a great extent and some other coins also followed the same route.
However, things went hay way when Trump declared the tariff plan. There was immense geopolitical tension after the announcement, and trade in both traditional and digital assets suffered badly.
Consequences for the Cryptos
The 7-day trading volume of BTC hit rock bottom. Meanwhile, the top 10% of the altcoins also suffered the same fate.
As prices faced a backlash, people started searching for low-risk options. Consequently, the demand for altcoins reduced. The situation has been worse than you think.
BTC became extremely volatile. The volatility index of stablecoin rose from 34% to 51% in just 1 month. Altcoins took the beating, but their volatility was still in check. This disparity between altcoins and BTC triggered investors against entering the market anytime soon.
Tailwinds in the Q2
The second quarter has been positive for the markets and the risk assets. BTC is up again. After dropping to a staggering $73,000, Bitcoin is up to $80,000 again. The market is happy that BTC is holding on to the resistance mark. So, what went Bitcoin’s way?
The regulated trade by institutional investors helped Bitcoin to a great extent.
Experts say this is a great sign. However, Bitcoin alone cannot pull up the whole market. The altcoins need to perform well too. Especially, ETFs pegged to the altcoins should perform better.
The Q1 was a death zone for the altcoin ETFs and the other exotic crypto products. However, that’s changed now. There is a high chance that Paul Atkins will address all 40 active ETF applications waiting for approval at the SEC.
