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More than 800 billion dollars have been destroyed in the global cryptocurrency markets in recent weeks, when the enthusiasm that has swept the crypto industry after Donald Trump’s electoral victory last year.
The price of Bitcoin dropped up to 3.6% on Wednesday at $ 85,600, bringing its losses in the month to 15%. Other tokens have undergone even greater losses, because cryptographic assets are swept away in a wider sale of risk assets, and the largest flight of cryptocurrency shakes confidence in industry.
Traders have also become frustrated that Trump did not take faster to promulgate some of the reforms he promised on the campaign campaign.
“The slower than expected deployment of any major pro-Crypto policy has led to disappointment,” said Gadi Chait, head of investments at Xapo Bank.
The nominal value of the cryptographic industry fell from $ 810 billion in its summit in January, according to CoinmarketCap data.
Investors fired nearly a billion dollars of Bitcoin Exchange exchanged funds on Tuesday, according to Bloomberg Data, because deepening triggered a record exodus of vehicles that helped the prices of the electric cryptography to record heights at the end of last year. Trump’s tariff dam also frightened investors, sending them races from risky active ingredients, including crypto.
“There has been a recalibration of expectations concerning the cryptographic position of the Trump administration,” said Chait.
Some traders had hoped that under Trump, the United States would begin to buy bitcoin and quickly adopt new rules to encourage major financial institutions to buy crypto.
But the most prominent decision of the new president launched a so-called same in January. The price of the token plunged 83% compared to a brief summit, and Trump faced a generalized game on its launch.
Michael Dempsey, managing partner of the compound capital company, said Trump “threw mecoins”, paving the way for other politicians to follow the step “and actually destroyed the market for a few months – at least “.
High -level recent scandals are also important on industry.
The samecoin promoted by Argentinian president Javier Milei earlier this month quickly plunged into value, leaving investors confronted with strong losses, while the same launch of Melania Trump also aroused criticism. Last week, $ 1.5 billion in Ethereum, the second largest cryptocurrency, was stolen on the stock exchange in the largest hacking to date, rekindling concerns about the safety of digital tokens held by commercial places.
The price of Ethereum dropped 23% in the last month, while Solana, the token representing the blockchain that hosts most of the same, dropped by 42%.
“What the crypto digests is the end of the same boom,” said Matt Hougan, director of investments at Crypto Asset Manager. He added that until the institutional interest in cryptographic yields, “the loss of energy will create trail on the market”.
