Crypto Market Faces Sell-Off Amid Trump’s Liberation Day and Inflation Concerns
Teh crypto market experienced a notable downturn on Friday, driven by a risk-off sentiment. This came ahead of Donald Trump’s Liberation Day and following strong US inflation data. Bitcoin (BTC) fell below $84,000, marking a 5.5% drop from its recent high. Many altcoins, including Polygon (POL), jasmycoin (JASMY), Bonk (BONK), and Injective (INJ), also saw declines, with some dropping over 10%.
The main catalyst for the sell-off was a report from the Bureau of Economic Analysis,which showed a rise in US inflation in February. This increased the likelihood of the Federal reserve adopting a more aggressive stance this year. However, a Bloomberg analyst predicts rapid rate cuts in the second half of the year.
Adding to the market’s woes, Trump’s upcoming Liberation Day and his plans for reciprocal tariffs have raised concerns. Meanwhile, a team from Elon Musk’s department of Government Efficiency (DOGE) visited the Securities and Exchange Commission (SEC).Trump has tasked Musk with streamlining the Federal Government, aiming to save taxpayers over $130 billion. The SEC, responsible for overseeing financial markets, including crypto, is now reviewing spot crypto ETF filings by firms like Canary, Grayscale, and franklin Templeton. The SEC,which is investigating crypto ETF filings,has become more crypto-amiable under Trump’s administration.The SEC is considering approving several crypto etfs and easing legal battles against companies like Coinbase and Kraken.
DOGE’s visit to the SEC is significant, as the agency investigates crypto ETFs. The SEC’s new direction under Trump has been more accommodating to cryptocurrencies.The agency is expected to approve many crypto ETFs and end legal disputes with major crypto firms.
Despite these challenges, the SEC’s new chair, Paul Atkins, may further support the crypto industry. The agency has hinted at approving more crypto ETFs and easing pressure on companies like Uniswap.
Key points include:
- US inflation data raised fears of a hawkish Fed.
- DOGE’s arrival at the SEC could lead to changes in regulatory policies.
- Trump’s policies and Musk’s influence could reshape the regulatory landscape.
With Republicans in control, the crypto sector may see a friendlier regulatory environment. The arrival of DOGE at the SEC could bring changes,though specifics remain unclear. The SEC’s shift towards crypto-friendly policies could signal a positive shift for the industry.
As the market adjusts, investors await further developments in the regulatory landscape.
