Why Made in USA Coins Face Major Losses Amid Trump Policies
Why Made in USA Coins Face Major Losses Amid Trump Policies
The cryptocurrency market is currently navigating a bearish phase, and tokens labeled as 'Made in USA' have been hit especially hard, particularly those associated with former President Trump's policies. In contrast, non-US projects like BNB and Bitget’s BGB token have displayed more resilience, underscoring the broader implications of macroeconomic factors on cryptocurrency assets.
Crypto Market Volatility
Recent weeks have not been kind to the crypto industry, with significant price corrections affecting many assets. While utility-driven network tokens outside the U.S. have managed to perform relatively well, their American counterparts are experiencing disproportionate losses. This divergence may hinder the pace of technological advancement within the domestic crypto space.
Impact of Trump's Policies
Since President Trump's announcement concerning the US Crypto Reserve, the market has seen chaotic fluctuations. Initially, there was some enthusiasm surrounding the proposed establishment of a Bitcoin-centric reserve, but Trump's expanded vision to include various 'Made in USA' coins has not panned out favorably. Many of these tokens have experienced substantial declines, with most of the leaders facing double-digit losses in the past week.
Recession Fears and Their Consequences
While the entire cryptocurrency market is facing downward pressure amid rising concerns of a US recession, a particular focus on tokens affiliated with Trump highlights a clear trend: the strength of macroeconomic conditions can exacerbate existing vulnerabilities. After Trump’s Crypto Summit received backlash from the community, the situation for these coins has become increasingly precarious.
Declining Affiliation with World Liberty Financial
Several Made in USA tokens have virtual ties to the Trump family-backed World Liberty Financial (WLFI). Following their significant investment in projects like LINK and AAVE, and subsequent partnerships with platforms like SUI and ONDO, a staggering 20% drop in value was observed shortly after last Friday’s summit. These smaller, WLFI-affiliated tokens took an even harder hit than the larger projects mentioned during Trump’s Crypto Reserve announcement.
Global Crypto Outlook
Notably, while US-based projects struggle, utility-driven cryptocurrencies outside the country, including BNB and Bitget, managed to maintain losses between 2% and 5% during this tumultuous period. It is worth noting that many US cryptocurrencies, such as Chainlink and Sui, also hold innovative potential, yet their association with the 'US/Trump brand' seems to weigh heavily on their performance.
Overall, macroeconomic conditions linked to Trump’s policies or the broader US landscape are likely to continue impacting these tokens negatively. Investors should remain attentive to these dynamics as they navigate the evolving cryptocurrency market.