Last week, the crypto market faced a sharp correction as investors pulled over $440 million from the total market capitalisation.
While many blamed the downturn on Donald Trump’s announcement of a Strategic Bitcoin Reserve, others viewed it as a natural adjustment following months of rapid growth.
Major Sell-Off And Liquidations
As the week progressed, total market capitalisation fell from $3.11 trillion on Monday to $2.61 trillion by Sunday.
This sharp decline led traders to liquidate $3.64 billion in assets, according to Coinglass.
Meanwhile, major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Solana (SOL) suffered significant losses.
However, analysts argue that broader economic concerns also contributed to the sell-off.
Trump’s tense Oval Office exchange with Ukrainian President Zelenskyy and his discussions on new US tariffs further unsettled investors.
Read Also: Rising Demand For Medication Fuels 45% Revenue Surge At MeCure
Bitcoin Reserve Sparks Debate
Despite initial disappointment, some analysts view the Bitcoin Reserve announcement as a long-term positive.
Instead of selling or offloading confiscated Bitcoin, US officials decided to hold onto their Bitcoin assets.
CEO of Token Metrics, Ian Balina, pointed out, “Although many traders reacted negatively, this decision signals the government’s long-term commitment to Bitcoin.”
Looking Ahead
Meanwhile, Trump admitted in a Fox News interview that his policies could cause short-term economic pain.
However, he reassured investors by stating, “What we’re doing is building a foundation for the future.”
As the market moves forward, some investors see the correction as an opportunity, with long-term Bitcoin holders maintaining confidence despite ongoing turbulence.
