- David Schwartz corrected an impression about crypto buyers and sellers.
- Schwartz argued there could be more sellers than buyers when prices tumble.
- Crypto prices dropped significantly after Trump’s recent policy declaration.
During the latest crypto market crash, Ripple CTO David Schwartz challenged a common impression regarding the balance between buyers and sellers. Schwartz suggested that the falling prices could be due to more people offloading their crypto holdings than buying, contrasting Paul Holfrerich, Fund Manager at Principles Capital, who argued there are always the same number of buyers and sellers in the crypto market.
Bitcoin and Altcoins Take a Hit
A minor argument broke out among the crypto personalities after Bitcoin and other cryptocurrencies took a significant hit over the weekend. BTC dipped 13% over the weekend, dropping below $92,000. Altcoins fell even harder, with Ethereum seeing a 37% drop in less than four days, while other major digital assets like Solana and XRP tumbled by 27% and 43%, respectively.
The downturn caught many off guard, considering the prevailing sentiment that President Donald Trump’s policies will suit the crypto industry and trigger adoption. Besides the potential effect of Trump’s expected policies, many analysts predicted a bullish month for altcoins after reviewing the crypto market’s historical behavior.
Related: Analyst Predicts Crypto Crash if US Recession Hits
Tariffs and Trade War Fears
Contrary to analysts’ expectations, President Trump’s team’s latest policy statements, with tariffs against Canada, Mexico, and China, triggered a decline in mainstream asset prices and those of cryptocurrencies. Many people see the policies as a declaration of a trade war between the US and those countries, especially since Canada and Mexico have announced retaliatory plans.
Most analysts believe crypto prices are crashing because the tariffs will impact consumers across the board, potentially diminishing their interest in investing in risk assets. That impression creates uncertainty among crypto community members, especially since no established policy direction for the US crypto industry.
Opportunity in the Downturn?
Related: Black Monday 2.0: Crypto Crash Follows Nikkei Plunge
Still, crypto optimists believe the market will rebound and are confident that the technology’s fundamentals will absorb the recent setback and start moving up again. For them, the current market is an opportunity to accumulate more assets at lower rates ahead of a potential bull run.
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