Trump Raises Hopes... Bitcoin Drops to $84,000

Altcoins Also Plunge Alongside Bitcoin
Investor Sentiment Weakens Amid Prolonged Policy Uncertainty
Trump Administration's Ambiguous Stance Fuels Market Instability

Including Bitcoin, the leading virtual asset, altcoins (virtual assets excluding Bitcoin) continue to decline. This is interpreted as being influenced by weakened investor sentiment due to policy uncertainties in the Donald Trump U.S. administration.

According to the global virtual asset market status relay site CoinMarketCap as of 9:50 a.m. on the 28th, Bitcoin was trading at $84,270.31, down 0.43% compared to the previous trading day (24 hours ago). During the session, it even dropped to $82,000. Compared to a week ago, it fell by 14.13%.

Altcoins also experienced significant declines. Ethereum dropped 15.92% compared to a week ago, while Ripple (XRP) and Solana fell 18.54% and 21.68%, respectively. Additionally, meme coins Dogecoin and Official Trump declined 18.88% and 26.40%, respectively.

The U.S. administration's slow progress on pro-virtual asset policies has fueled the decline in virtual assets. President Trump had promoted virtual asset-friendly pledges such as designating Bitcoin as a strategic reserve asset during the election campaign. However, disappointment grew as no specific policies emerged, including the absence of Bitcoin's strategic asset reserve in the virtual asset-related executive orders.

Hyunjung Kim, a researcher at Kiwoom Securities, said, "Expectations for virtual assets were already reflected during Trump's inauguration period, causing a significant rise. Since no concrete pro-virtual asset policies have been announced after his inauguration, the ongoing decline is due to disappointment in this regard."

Minho Lim, a researcher at Shin Young Securities, also explained, "Looking at the policies issued by the U.S. government, Congress, and regulatory authorities, they are at the level of existing pledges. Since some parts fall short of market expectations, adjustments seem to have occurred."

Additionally, economic uncertainties caused by President Trump's tariff policies remain a burden. Recently, President Trump decided to impose tariffs on the European Union (EU), stating that the announcement would be made "very soon," and the tariff rate would be 25%. He also announced new tariffs on Mexico and Canada, effective from April 2. These tariff policies have expanded uncertainties, reducing preference for risk assets.

Moreover, negative news has emerged in the virtual asset market. The hacking incident involving the Bybit exchange, amounting to 2 trillion won last week, adversely affected investor sentiment. This reflects past experiences when Bitcoin and others plunged due to the bankruptcy of FTX, once the world's third-largest virtual asset exchange. Researcher Kim said, "There have been experiences of sharp declines whenever major incidents related to virtual assets, such as the Luna or FTX cases, occurred, which led to continued selling pressure."

However, there is an analysis that the current decline alone will not plunge the virtual asset market into a recession. Since President Trump remains favorable toward virtual assets, there is potential for a rebound depending on his statements.

Researcher Lim said, "Positive legislation related to virtual assets is expected to emerge. If the interest rate cut cycle continues toward the end of the year, it will certainly create a favorable environment for virtual assets."

Seongwook Hong, a researcher at NH Investment & Securities, said, "It should be considered that the market rose significantly after President Trump's election and then gave up some of the gains. The effects of deregulation on digital assets overall are expected to gradually appear, and due to the U.S. Bitcoin spot exchange-traded fund (ETF) and the pro-virtual asset policies of the second Trump administration, extreme volatility like in the past is expected to be limited."

However, volatility is expected to be inevitable for some time. Researcher Kim explained, "Like the stock market, fluctuations are likely to repeat depending on tariff issues or Trump's remarks. Volatility is expected to persist until Trump's policies stabilize."

This content was produced with the assistance of AI translation services.