Crypto crash: Heated exchange between Trump and Zelenskyy influenced global event

Why crypto was crashed last week:

The cryptocurrency market faced a major downturn on last week, losing a significant amount of value. The market started the week at $3.11 trillion but dropped to $2.61 trillion by Sunday, wiping out $440 billion in total market capitalization. This steep decline led to panic among investors and traders, causing a chain reaction of sell-offs across multiple digital assets.

The falling market triggered massive liquidations, totaling $3.64 billion. When prices drop suddenly, traders who borrow funds to invest (using leverage) are forced to sell their holdings to cover their losses. This wave of liquidation worsened the decline, causing prices to fall even further.

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Several key events contributed to this market crash. Major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Solana (SOL), all suffered double-digit losses. This decline was fueled by economic uncertainty, political tensions, and unexpected government decisions affecting the crypto industry.

One of the major global events that influenced the market was a heated exchange between former U.S. President Donald Trump and Ukrainian President Zelenskyy. Along with this, the possibility of new U.S. tariffs created additional concerns about the global economy. Investors reacted nervously to these developments, which led to a decline in confidence in the crypto market.

The White House also hosted a crypto summit, where officials discussed policies affecting the digital asset space. Additionally, the U.S. government announced a Strategic Bitcoin Reserve, which was expected to be a positive move for the market. However, instead of buying more Bitcoin, the government stated it would not sell any of its existing or confiscated Bitcoin.

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Ian Balina, CEO of Token Metrics, explained that many investors were hoping for the government to purchase new Bitcoin, which could have boosted prices. Instead, the market reacted negatively to the announcement, and Bitcoin’s price dropped further. Balina also mentioned that indicators still show a bearish trend for Bitcoin, meaning that prices could continue to struggle in the near future.