Interim high already over: Bitcoin & Co. have already lost profits again
The sharp rise in the price of several cryptocurrencies was probably just a flash in the pan, and the gains were almost completely lost again on Monday.
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After new details on the planned US national cryptocurrency reserve brought significant price gains for Bitcoin and some alternatives, these almost completely evaporated over the course of Monday. Bitcoin fell directly below the USD 90,000 mark again and costs less than it did on Sunday, before the temporary spike. The situation is similar for Ethereum, XRP and Solana. Only Cardano is still well up on the previous week. They had all benefited from Trump's announcement that they would be included in the US reserve. The negative reactions of the financial markets to the escalating trade conflict in North America are apparently responsible for this.
The brief interim high in a market that had seen nothing but losses for days was triggered by Trump's announcement as to which cryptocurrencies are to be included in a crypto reserve to be created alongside Bitcoin. The lesser-known digital currencies XRP, Solana and Cardano in particular had benefited from this, with prices jumping by more than 40% in some cases. On Monday, however, the conviction spread that Trump merely wanted to score a political victory before the tariffs on goods from Canada and Mexico and poor economic figures could cause dissatisfaction not only on the financial markets, writes Bloomberg. As a result, share prices fell again.
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"Bitcoin's recent price rise has obviously turned out to be a flash in the pan," dpa quotes market analyst Timo Emden from Emden Research as saying. The brief euphoria over Trump's statements quickly gave way to a more sober approach. Investors had ultimately realized that they could not buy anything from his words. When it became clear on Monday that high US tariffs on all goods from Canada and Mexico would actually come into force today, Tuesday, and that US tariffs on Chinese goods would be doubled, the stock markets came under heavy pressure. There are fears of a trade conflict with consequences for the global economy.
(mho)
