Ever Since Its Inception, the Crypto Market Has Been Full of Volatility

Ever since its inception, the crypto market has been full of volatility, but the recent crash has again pointed out the unpredictability of digital assets. Under the current circumstances, $619M has been liquidated

The crypto market has always been known for its volatility, but recent events have brought an extreme level of unpredictability to the digital assets. In the last 24 hours, $619M has been liquidated from the market, and the global crypto market cap has dropped to $2.7T, a price level last seen before Donald Trump’s election win.

As the former U.S. President continues to make headlines with his bold political moves, it appears that his personal crypto portfolio has also taken a substantial hit. According to the latest Arkham Intelligence data, Trump’s crypto-project, World Liberty Financial’s portfolio, has suffered a major setback.

The Trump administration’s close adviser, Devon рано, is the founder of World Liberty Financial, a company that aims to build an "omnipotent" crypto empire. The project's portfolio, valued at $800M in March, has since decreased to $690M, showcasing a $110M loss.

Out of the 65% share, the most significant drop can be attributed to the Ethereum price struggles. However, the remaining 35% of the portfolio, composed of various altcoins, has also taken a considerable toll, highlighting the poor state of the market.

The crypto market has seen its fair share of ups and downs, especially during Trump’s presidency. The former president's actions have had a mixed impact on the industry, leading to both gains and losses.

Earlier this year, investors began showing more confidence in the industry as Trump announced the U.S. Strategic Crypto Reserve and later hosted the Crypto Summit. These events were met with optimism, especially in contrast to the previous year when the crypto industry was battling stricter regulations in several countries.

However, critics have presented a different take, especially on Trump’s crypto portfolio as a conflict of interest. With higher expectations and rising uncertainty, the crypto market crashed.

Analysts believe this happened as uncertainty surrounded these key events, such as the Trump administration pivoting to seize $3.5B in illicit BTC or the U.S. president's actions being seen as a desperate attempt to salvage the floundering economy.

Nevertheless, things may turn in favor in the long term with these events catering to benefit the industry with grown adoption.

Amid the high optimism around the U.S. Strategic Reserve, analysts have pointed out several risks with forming a government-backed reserve. For instance, Solana co-founder's controversial post claims it is against the nature of decentralization, while the others add that it could result in market manipulation by the government.

In addition, it could bring corruption risk, favoritism of assets, regulatory capture, as they could shape policies in their favor, and much more.

Crypto critic Peter Schiff even mocked Trump's Bitcoin Reserve, claiming he is launching one himself. These incidents reveal the investors' diverted sentiments on these Trump events, resulting in the crypto market crash.

Along with highs, crypto has seen devastating lows since Trump’s political resurgence. While his crypto policies aim to make the United States the crypto capital, they have also increased volatility.

Along with that, ethical concerns are also rising, with many questioning Trump’s effect. As the former president continues to make headlines, it remains to be seen what the long-term impact of his presidency will be on the crypto market.

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