Market on Edge: Trump’s Crypto Picks, Tariffs, and Friday’s Big Event

DAILY MARKET OVERVIEW

Crypto Under Pressure

👋 Hey, Crypto Enthusiasts! This weekend was anything but quiet. The market has been a wild rollercoaster, fueled by Trump’s unexpected crypto strategy and escalating trade war tensions. Let’s dive in!

The crypto market is facing two major forces at once: a potential U.S. trade war and a surprising shift in crypto policy.

The past few days have been a wild ride for the crypto market. As we left off on Friday, sentiment was weak, and uncertainty was weighing on prices. Saturday remained slow, but on Sunday, something completely unexpected happened.

♟️ Trump’s Crypto Strategic Reserve: A Game-Changer?

Donald Trump has officially confirmed plans for a Crypto Strategic Reserve, originally expected to include Bitcoin and possibly Ethereum. However, in a surprise move, he announced that Solana (SOL), XRP, and Cardano (ADA) will also be part of it.

Since weekends are less liquid, the announcement sent prices soaring for these assets. However, those gains were short-lived. By Monday, most of the rally had reversed, as a bigger issue took center stage - a potential trade war.

🌎️ Trade War Begins? Global Tensions Shake the Market  

Trump’s tariffs on foreign imports are now in effect, and affected countries are already responding.

• China imposed 15% tariffs on U.S. agricultural goods.

• Canada announced 25% tariffs on U.S. imports until Trump's tariffs are withdrawn.

• Mexico is expected to reveal its own tariff plan on Sunday.

This escalation adds another layer of uncertainty to the markets. The big question now is: Will this impact crypto liquidity and investor sentiment in the long run?

For now, the market message is clear: stay defensive until we get more clarity.

❓️ What to Expect from the White House Crypto Summit on Friday  

The most anticipated event this week is the White House Crypto Summit, where Donald Trump will be speaking on crypto topics, but expectations remain low.

What we don’t expect to happen:

• The U.S. government is unlikely to make a major crypto purchase. If they do, it would be a small allocation to avoid front-running.

What could happen:

• The most bullish but realistic scenario would be an announcement of capital gains tax exemptions for crypto profits.

• While there are rumors about this, Congress would still need to approve it before it becomes law.

• For now, traders should prepare for volatility leading up to Friday’s event.

📒 What’s Next? Key Market Trends to Watch

📌 Strategic Reserve Coins (SOL, XRP, ADA):

• Saw massive volatility after Trump’s announcement.

• Could see reaccumulation ahead of Friday, but price action depends on macroeconomic sentiment.

📌 Whale & Insider Activity:

• Suspicious trading patterns on Hyperliquid - some large traders seemed to anticipate the Trump announcement.

• If the market keeps dropping while stocks remain stable, it could indicate insider moves or deeper liquidity issues.

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SOCIAL SENTIMENT

Crypto in Fear Mode: How Bad Can It Get?

The market is in extreme fear right now, and the sell-off has put most altcoins under pressure.

🔴 The majority of altcoins are down sharply.
🟢 AAVE is one of the few exceptions, seeing a small relief rally ahead of the AAVE 4.0 upgrade and new tokenomics.

How Much Lower Can We Go?

• Bitcoin: Could test the key $75K support level soon, with a potential of $ 65K as the next major support if things worsen.

• Ethereum: Bears are targeting $1800 as a key support level with $1600 as a potential as well

Traders are now looking toward Friday’s summit for any hope of positive news. In addition, rate cuts remain a potential long-term catalyst, but they aren’t likely to come soon enough to stop the short-term downside.

For now, the safest strategy is capital preservation and waiting for a clearer macro environment.

NEWS OVERVIEW

The Latest Crypto Headlines 📰 

Tether Appoints New CFO to Lead Financial Audit and Boost Transparency
Tether appoints Simon McWilliams as CFO to conduct a comprehensive financial audit, addressing longstanding transparency concerns and strengthening trust in USDT reserves.

Dogecoin ETF Faces SEC Review as Market Optimism Rises
The SEC is reviewing Bitwise’s Dogecoin ETF, with approval odds increasing to 67%, but DOGE’s price drops 16% amid market volatility.

Cronos Proposal to Reissue $5.3B in Burned CRO Faces Strong Opposition
Cronos proposes reissuing 70 billion CRO tokens, but 95.7% of validators vote against it, citing concerns over supply dilution and investor trust.

Grayscale Pushes for Hedera ETF as Altcoin Index Fund Gains Momentum
Grayscale’s HBAR ETF filing could pave the way for crypto index ETFs, as the SEC continues reviewing multiple altcoin ETF applications.

YOUTUBE INFLUENCER SUMMARY

Summary From The Top Influencers 📷️ 

Lark Davis - Crypto Holders Is It Over? (04.03.2025 Summary)

The crypto market has been brutal, with extreme volatility, massive liquidations, and worsening sentiment. Lark Davis breaks down the latest crash, what’s causing it, and whether there's light at the end of the tunnel.

Total Crypto Market Collapse: Brutal Sell-Off

• The market lost $350 billion in 24 hours, one of the worst single-day drops ever

• Bitcoin remains in a strong downtrend, unable to break above key resistance levels

• Altcoins are getting destroyed, with Ethereum, Solana, and meme coins seeing heavy losses

The Bigger Picture: Global Markets in Chaos

• The Volatility Index (VIX) spiked to 69, the highest since the 2020 COVID crash

• Trump’s tariff policies are sending stocks into panic mode, leading to broader risk-off sentiment

• The equity markets are crashing, and crypto is feeling the pain, with no good news able to reverse the trend

Bitcoin Holding Key Support – But for How Long?

• Bitcoin has failed multiple breakout attempts, getting rejected at every resistance level

• Until BTC reclaims the 20-day and 50-day EMAs, the market remains bearish

• If Bitcoin loses $75K support, things could get ugly fast

The Trump Crypto Narrative: Can It Save the Market?

• Trump’s "Strategic Crypto Reserve" is bullish long-term, but the market is ignoring it short-term

• There are rumors that U.S. capital gains tax on crypto will be eliminated, but Davis warns "no one's gonna have gains left to tax at this rate"

• If Trump successfully forces the Fed to cut rates, liquidity will return, but pain could last for months before that happens

Altcoins in Freefall – Ethereum Underperforms

• Ethereum is the worst-performing major asset, failing to hold $2,500 and now hovering near $2,000

• Solana, Cardano, and meme coins are facing massive liquidations, draining liquidity from the entire market

• If ETH drops below $2K, Lark suggests cutting losses, calling it “the most disappointing asset of the cycle”

Final Take: Survive Until Markets Turn

• Davis still believes in long-term bullishness, expecting Bitcoin to hit $150K-$250K later this year

• But short-term pain is real, with headline risk, volatility, and downtrends dominating the charts

• Key strategy: Hold cash, avoid overleveraging, and wait for strength to return

Bottom Line: The market is in freefall, and short-term sentiment is horrific. While Davis believes the bull cycle isn’t over, he warns that things could stay irrational for weeks or even months before a true recovery.

CryptoRus - Bitcoin and Crypto DUMPED Again... (04.03.2025 Summary)

CryptoRUs is frustrated and disappointed as the crypto market erases all gains from Trump’s recent bullish crypto announcements. He blames Wall Street panic, liquidity fears, and misguided risk-on sentiment for the collapse.

Bitcoin Wipes Out Recent Gains – Now Below $83K

• Bitcoin pumped to $95K after the Trump crypto reserve announcement, only to crash below $83K in the biggest reversal of the year

• This drop is worse than expected, as BTC has now lost all momentum from bullish catalysts

• The $78K CME Gap is now in play, and if broken, BTC could see even deeper losses

Wall Street is in Full Panic Mode

• Dow -700 points, Nasdaq -500 points, tech stocks and crypto are both in a sell-off frenzy

• Nvidia dumped 9 percent, showing that even strong companies aren’t safe from tariff fears

• Trump confirmed that tariffs on China, Canada, and Mexico are happening, leading to global risk-off sentiment

Altcoins Hit Harder Than Bitcoin – Meme Coins Are Dead

• Cardano (-60 percent), XRP (-50 percent), Solana (-40 percent) – massive liquidations everywhere

• Meme coins and speculative assets are being dumped at record speed, with no liquidity left

• Wall Street whales are liquidating everything, forcing even stronger downward pressure

Trump’s Crypto Reserve Plan: Why Isn’t It Helping?

• Trump announced the U.S. will hold a Bitcoin and crypto reserve, but the market is not reacting positively

• Rumors suggest China and Russia will launch their own crypto reserves, but it’s not enough to offset market fear

• Saylor supports the reserve, saying it’s bullish long-term, but short-term, Wall Street doesn’t care

SEC Softening Stance on Crypto – A Positive Shift

• SEC dropped lawsuits against Kraken and Yuga Labs (NFT case)

• SEC now says NFTs are NOT securities, a major win for the industry

• Regulation roundtables start in March, which could lead to clearer rules for crypto

Final Take: Wall Street Will FOMO Back – Stay Strong

• CryptoRUs believes this sell-off is temporary, but it’s frustrating and irrational

• He urges investors to avoid panic-selling, reminding them that Wall Street will eventually buy back in

• Bitcoin is NOT a tech stock and will eventually decouple from risk-on sentiment, but right now, that’s not happening

Bottom Line: Bitcoin is being treated as a tech stock, and Wall Street is dumping everything. Despite Trump’s bullish stance, macro fear is overpowering all positive crypto news. Stay patient, Wall Street will come back.

CRYPTO MEMES