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Selasa, 11 Maret 2025

The Recap: Bloodbath — Here's why the market is tanking

 The crypto week in focus
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Hey cryptopians,

The crypto market took a beating this week as economic uncertainty, weak investor sentiment, and global financial shifts fueled a major sell-off.

President Trump's highly anticipated Crypto Summit failed to spark a rally, leaving traders disappointed, while fears over XRP's exclusion from the U.S. Strategic Bitcoin Reserve added to the bearish mood. Meanwhile, many analysts speculate that his missfired crypto reserve project is simply a pump-and-dump scheme.

Japan's rising bond yields threaten global liquidity, putting even more pressure on risk assets like Bitcoin.

Let's dive into the biggest stories shaping the market this week.

Massive wave of sell-offs tanks market

A wave of sell-offs has gripped the crypto market as economic uncertainty and trade tensions spooked investors.

  • Bitcoin dropped 10% over the past week, approaching its 2025 low of $78,000.
  • The market slump triggered $620 million in liquidations, with long positions suffering the most.

Traders are closely watching upcoming economic data, including the U.S. Consumer Price Index, which could further impact market direction.
Meanwhile, fears over escalating U.S.-China trade tensions are adding to the pressure on risk assets like crypto.

Is Trump's Crypto Reserve a Pump-and-Dump Scheme?

Critics are questioning whether Trump's Strategic Crypto Reserve is a legitimate national initiative or a move to inflate his own crypto holdings.

  • Trump-affiliated World Liberty Financial (WLFI) holds significant stakes in Ethereum and Wrapped Bitcoin, assets linked to the reserve.
  • Watchdogs warn that Trump and his family control 60% of WLFI, creating potential conflicts of interest.

The above image shows WLFI's crypto holdings as of Mar. 5, sourced from Arkham Intelligence.

While Trump claims the reserve is about securing America's digital future, insiders and analysts point to the financial windfall it creates for his holdings.
With accusations of market manipulation growing, scrutiny around Trump's crypto dealings is only getting more intense.

Crypto Summit Fails to Spark Investor Enthusiasm

Despite high expectations, the White House Crypto Summit failed to trigger a market rally, disappointing retail investors.

  • Funding rates for perpetual futures remain low, signaling weak trader sentiment.
  • The event followed a classic "buy the rumor, sell the news" pattern, leading to further declines.

With investors increasingly skeptical of Trump-related crypto initiatives, the market now looks to stronger catalysts for a rebound.
Without new policy moves or institutional momentum, Bitcoin's next leg higher may take longer than expected.

XRP Faces Potential 55% Crash if Excluded from Strategic Reserve

XRP is teetering on the edge as doubts grow over its inclusion in Trump's Strategic Crypto Reserve.

  • Analysts predict XRP could fall as low as $1.13 if it fails to make the cut.
  • Polymarket places the odds of an XRP reserve at just 29%, further fueling bearish sentiment.

While SEC approval for a spot XRP ETF remains a potential upside, weak institutional support is weighing heavily on its price.
If XRP fails to hold key support levels, the sell-off could accelerate in the coming weeks.

Japan's Bond Yields Spell Trouble for Crypto

Japan's 40-year bond yield nears a historic high, threatening global liquidity and risk assets like crypto.

  • Rising Japanese yields could pull capital away from U.S. Treasuries, strengthening the dollar.
  • A stronger dollar often leads to a decline in Bitcoin and other cryptocurrencies.

With monetary tightening looming, investors may shift away from speculative assets, deepening crypto's current struggles.
If liquidity continues to dry up, the market could face an extended period of volatility and downside pressure.

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This issue is written and edited by Conor Maloney

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