Crypto Market Swings Wildly on Trump Policy News,
by Jamie Redman
Crypto Market Swings Wildly on Trump Policy News, Traders Cash In: Cryptoquant Report
Digital asset valuations vaulted dramatically following former President Donald Trump’s Sunday unveiling of a proposal to create a U.S. Digital Asset Reserve, incorporating bitcoin, ethereum, XRP, solana, and cardano. Bitcoin leapt nearly 10%, ethereum 13%, and XRP 34% within hours on Sunday, according to Cryptoquant analysts. The declaration ignited enthusiasm around institutional embrace, spurring frenzied acquisition.
Crypto Market Swings Wildly on Trump Policy News, Traders Cash In: Cryptoquant Report
Strategic Reserve Announcement Fuels Volatility as Traders Dump Holdings, Exchange Reserves Spike
The euphoria proved fleeting. Cryptoquant metrics revealed bitcoin inflows to trading platforms rocketed from a typical 500-1,000 daily average to 6,739 within a day of the news, hinting at a swift divestment. Ethereum witnessed hourly deposits balloon to almost 300,000, while XRP logged 2 billion tokens funneled into exchanges over 48 hours, with single-hour spikes hitting 193 million. Bulk transactions exceeding 1 million tokens were predominantly executed by influential holders, often called whales.
By Monday, bitcoin and ethereum had retreated following Trump’s agriculture tariff comments, shedding 9% and 14% respectively. XRP similarly surrendered its advances. Cryptoquant experts linked the reversal to traders exploiting the ephemeral price jump rather than enduring appetite. “The subsequent drop in crypto prices indicates that real spot demand continues in contraction territory,” the analysis noted.
Crypto Market Swings Wildly on Trump Policy News, Traders Cash In: Cryptoquant Report
Interest in bitcoin has waned since late 2024, Cryptoquant observed. Perceived demand expansion, which briefly quickened post the November 2024 U.S. election, plunged into negative territory by March 2025—a first since September 2024. Absent revitalized interest, stabilizing valuations grows increasingly precarious. “Unless bitcoin demand begins to recover, sustaining a rally in crypto prices will be difficult,” the researcher remarked.
Cryptoquant‘s report spotlights the crypto sector’s acute responsiveness to policy developments and dependence on speculative maneuvers. Researchers warned that erratic price swings may endure without definitive regulatory guidelines or sustained institutional engagement.
At press time, exchange holdings for leading digital assets stayed inflated, suggesting persistent liquidation momentum. Cryptoquant advised tracking blockchain-based indicators to discern whether the downturn signifies a transient adjustment or entrenched pessimism.
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