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Why Is Bitcoin, Ethereum, Solana & XRP Price Dropping?

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Another crypto market crash is occurring, with the Bitcoin price dropping below the crucial $95,000 support level, dragging altcoins like Ethereum, Solana, and the XRP price along with it. This price crash has occurred mainly due to the bearish sentiment in the market, thanks to several factors.

Crypto Market Crash: Why BTC, ETH, SOL & XRP Are Down

CoinMarketCap data shows that a crypto market crash is occurring again, with the Bitcoin price dropping below the psychological $95,000 level. Altcoins like Ethereum, Solana, Dogecoin, and the XRP price have also significantly declined.

This price crash has occurred due to several factors, including global economic uncertainty. For one, US President Donald Trump continues to threaten to impose tariffs on other countries. Yesterday, the president announced that he has decided that for the purposes of fairness, he will charge reciprocal tariffs on countries that charge the US.

This continues to raise concerns about trade wars, which is bearish for the crypto market. Meanwhile, the bearish sentiment in the market is also due to the US Federal Reserve’s quantitative tightening policy, with no hopes of monetary easing policies anytime soon. Traders predict that there will be only one Fed rate cut this year, which is unlikely to come until the second half of the year.

These developments sparked a bearish sentiment among investors, ultimately leading to this crypto market crash. The Bitcoin price has struggled to reclaim $100,000 for a while now and now even looks more likely to touch $90,000.

Bearish Factors In The Market

Besides the uncertainty on the macro side, other developments have led to the crypto market crash. Crypto analyst Ali Martinez recently revealed that the capital inflows into Bitcoin and Ethereum have declined by over 30% in the past month, dropping from $45 billion to $30 billion.

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This indicates that there is a lack of liquidity in the market to sustain higher prices. Investors look to be holding off on allocating more capital to the market due to the bearish sentiment. Instead, more investors look to offloading their coins as the market likely priced in to Donald Trump’s administration even before he took office.

Moreover, some community members believe that Trump’s administration has fallen short of its promises to the crypto industry, considering that the Strategic Bitcoin Reserve initiative hasn’t yet happened.

Amid this crypto market crash, Martinez has also suggested that the market could witness lower prices, as he revealed that prolonged price corrections have historically followed a decline in Bitcoin mining activity.

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Away from the Bitcoin ecosystem, the bearish sentiment in the Solana sentiment also looks to be at an all-time high (ATH) following the LIBRA meme coin rug pull. Traders allegedly lost over $286 million to the rug pull, which has further sucked liquidity out of the crypto market.

This development has further dampened investors’ confidence, especially considering Argentina’s President Javier Milei promoted this meme coin on his X account. This saga has raised the ghosts of the TRUMP and Melania meme coins, which sucked liquidity from the market just before Donald Trump took office.

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Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Trump’s Financial Empire Makes Waves with $10M WLFI, $125K SEI Buy

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February 20, 2025

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United States President Donald Trump’s World Liberty Financial announced another round of investments this week to further build its crypto portfolio. According to on-chain data, World Liberty Financial withdrew $10 million USDC from its Coinbase account to purchase 200 million WLFI tokens and another $12k to buy 547,990 SEI tokens, with an average price of $0.228.

Both transactions were recorded last February 20th, as reported by Onchain Lens. The crypto firm’s latest transaction coincided with the release of its macro strategy last February 12th.

Trump Family’s Foray Into Crypto Continues

World Liberty Financial is a crypto and DeFI project supported by the US President and some family members, including Donald Trump Jr., Eric Trump, and Barron Trump. It aims to strengthen the US dollar’s position in the highly competitive DeFi space.

According to company records, Trump and his associates control 60% of the WLF, which assigns them 75% control over the firm’s revenue and access to 22.5 billion tokens. Trump’s family also owns most of the Trump Media & Technology Group, which recently announced its shift to crypto after starting with financial services.

Total crypto market cap currently at $3.15 trillion. Chart: TradingView

WLF’s Macro Strategy – What We Know So Far

Last February 12th, Trump’s crypto company announced the creation of the Macro Strategy, a strategic token reserve that aims to boost its competitiveness in DeFi. In a Twitter/X post, WLF shared that this new project aims to enhance stability, foster growth, build trust, and promote strategic partnerships with financial institutions.

WLF recently received a boost from Tron’s Justin Sun, who invested at least $75 million in its native token, making him one of the most prominent investors. However, Sun’s entry into the company was criticized due to his alleged links with illegal financial activities. Aside from Sun’s investment, WLF has offered various deals to its investors, making it one of the biggest crypto launches to date.

WLF Continues To Boost Holdings, As Criticisms Start To Trickle In

WLF continues its expansion in the crypto market thanks to Trump’s backing and the entry of Sun. According to a BitMart Research report, as of February 9th, the company has sold $455 million worth of tokens. Trump’s crypto project generated $319 million from selling its 21.3 billion tokens at $0.015 each. And for its second round of sales, the company earned another $136 million.

However, WLF remains at the center of controversy due mainly to its links with the Trump family. According to some critics, Trump’s crypto project is self-serving and only benefits the president’s immediate family members and allies.

Featured image from ClutchPoints, chart from TradingView





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Atlanta Federal Reserve President Predicts Two Interest Rate Cuts in 2025

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February 20, 2025

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In a recent turn of events, Atlanta Federal Reserve President Raphael Bostic hinted at the Fed’s potential decisions on interest rates. According to the Federal Reserve President, the central bank may reduce interest rates twice in 2025. However, he expresses considerable uncertainty about the impact of President Donald Trump’s trade and migration policies.

Atlanta Federal Reserve President Comments on Interest Rate Cuts

According to a recent Reuters report, Raphael Bostic, the President of the Atlanta Federal Reserve, stated that the Fed will lower interest rates twice this year. However, adding uncertainty surrounding the expectations, he highlighted other major factors that could influence the Fed’s decision.

“While that’s my baseline expectation, there’s a lot that is going to happen that could influence that really in both directions,” posited Bostic. Further, citing potential changes in trade, immigration, energy, and fiscal policies, he added, “Right now, there is a lot of uncertainty about where some important factors are going to land.” Concluding his view, he added that his current outlook may likely change after six months.

Fed President’s View on Strong US Economy

Moreover, in an essay today, the Atlanta Federal Reserve President wrote about the central bank’s solid monetary policy and the country’s strong economy. According to Bostic, the current monetary policy is well-positioned.

Though he believes the US economy is strong, he doesn’t see the factors as a reason to relax. His statement highlights the uncertainty surrounding the new Trump administration’s policies and moves. His concerns suggest that heightened policy uncertainty could impact the labor market and inflation.

Federal Reserve’s Rate Cut and Jerome Powell’s Hawkish Stance

Following the Federal Reserve’s FOMC meeting at the end of January 2025, Chair Jerome Powell announced the bank’s decision to hold the interest rate unchanged at the 4.25%-4.5% level. The development initially sent the crypto market into a slump, but it has since staged a gradual recovery.

Later, on February 12, at his semi-annual monetary report, Powell shared a hawkish approach to interest cuts. He stated that the Fed sees no urgency in altering its policy as the economy remains strong. He added that the policy stance is “less restrictive” than before.

Inflation Deemed the Biggest Risk

The Atlanta Federal Reserve President considers inflation the biggest risk, despite its recent decline. With the risks to the Fed’s dual mandate now more balanced, he is increasingly focused on achieving 2% inflation without compromising labor market gains. Bostic stated,

I still think the biggest risk is inflation. As inflation has come way down, the risks to the mandates have come more into balance and so I’m more sensitive now to the possibility that we could get inflation at 2% without seeing a lot of damage in labor markets.

Nonetheless, the Federal Reserve’s next move remains unclear. At the same time, it remains uncertain how it will impact the crypto market. However, if the Fed maintains its hawkish stance, it could potentially trigger a bearish sentiment.

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Nynu V Jamal

Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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John Deaton Highlights Ripple’s Role In XRP ETF’s Acknowledgement

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3 hours ago

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February 20, 2025

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The US Securities and Exchange Commission (SEC) has taken a significant step by acknowledging XRP ETF applications from multiple asset managers, including CoinShares, Canary Capital, and WisdomTree. In response to the development, XRP lawyer John Deaton reflected on Ripple and XRP’s evolution over the past four years.

Notably, the XRP ecosystem has undergone significant transformations since the SEC lawsuit in 2020. Though Ripple faced unprecedented challenges over the period, recent developments including major court wins and Donald Trump’s re-election have marked a turning point. Let’s unveil XRP’s major developments over the period, leading to the SEC’s positive approach to XRP ETFs.

SEC Acknowledges XRP ETFs: John Deaton Weighs In

The SEC’s acknowledgment of XRP ETFs has sent shockwaves of optimism through the Ripple community. In a series of surprising events, the SEC recognized multiple asset manager’s XRP ETFs, fueling excitement.

Commenting on this bullish development, pro-XRP attorney John Deaton stated, “What a difference four years of litigation and an election can bring.” Via his latest X post, Deaton offered the community a unique perspective on XRP’s transformation over the past few years.

According to his remarks, the SEC’s recent move is largely attributed to Ripple’s court wins and Donald Trump’s presidential win in the 2024 election.

XRP ETF Acknowledgement: Broader Implications

Major investment firms are vying to launch an exchange-traded fund tracking XRP. The frenzy began when Grayscale proposed converting its XRP Trust into an ETF, prompting CBOE and Nasdaq to file 19b-4 applications.

The SEC’s subsequent acknowledgment of applications from Grayscale, 21Shares, and Bitwise sparked widespread optimism. Most recently, the SEC has also recognized XRP ETF applications from CoinShares, WisdomTree, and Canary Capital, further fueling excitement.

Key Factors Influencing XRP’s Journey

Notably, the SEC’s recent XRP ETF acknowledgment has been influenced mainly by two major events: Ripple’s court wins and Donald Trump’s election win. This development boosts optimism, even if it doesn’t confirm a potential green light for the ETF launch.

The crypto regulator sued Ripple in 2020, alleging the platform violated the federal securities law and raised $1.3 billion by offering unregistered securities. After a long battle, Judge Analisa Torres ruled that XRP in its digital token form is not a security. In a subsequent judgment in August 2024, Judge Torres drew a clear line between Ripple’s retail and institutional sales, declaring the retail sales to be legitimate.

Significantly, this regulatory status has contributed to the SEC’s recognition of the XRP ETFs. As per Deaton’s comments, in addition to this development, Trump’s re-election is another major event that impacted Ripple’s journey.

Specifically, Trump’s pro-crypto stance and the SEC’s regulatory shifts have potentially paved the way for a more favorable environment for XRP.

Ripple’s Evolution Since 2020 SEC Lawsuit

Ripple, founded in 2012, had established itself as a leading global payments platform by 2020. But its momentum was halted by the SEC lawsuit. Prior to the lawsuit, XRP remained a major player alongside Bitcoin and Ethereum. The token hit an all-time high of $3.317 in the 2017-2018 bull run, marking a staggering hike of 19,000%.

However, the lawsuit severely affected XRP’s trajectory. Major exchanges like Coinbase, Binance, and Kraken suspended XRP from trading following the lawsuit. Soon, the token’s price and market cap plummeted with XRP losing its ground.

Notably, XRP experienced a remarkable resurgence, fueled by Ripple’s courtroom victories and Trump’s election win. The cryptocurrency reclaimed its third spot on CoinMarketCap, soaring to a high of $3.2 as it eyed its all-time high. This upward trajectory was further reinforced by the SEC’s recognition of XRP ETFs. It was highlighted by John Deaton, underscoring Ripple’s continued growth and momentum.

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Nynu V Jamal

Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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