empty
10.03.2025 09:50 AM
Will demand for tokens revive? What are odds for further fall in Bitcoin and Ethereum?

Over the past two weeks, Bitcoin has plunged below the $91,000 level, which had served as a strong support level for over three months. Is there hope that this fall will be short-lived?

Bitcoin's downturn: market uncertainty deepens

Following Donald Trump's victory in the presidential race, the crypto market initially received support, fueled by statements from the returning president that his economic policy would prioritize cryptocurrencies as financial instruments.

However, this narrative quickly faded into the background, overshadowed by Trump's escalating trade wars with key economic partners—China, Canada, Mexico, and the EU. The resulting uncertainty about the future of the U.S. economy pressured the dollar, which, in theory, should have supported token prices. However, this did not happen. Instead, market confusion over the real direction of the US economy triggered instability across various sectors, including the crypto market.

Trump's Bitcoin reserve order: false hope?

Then, suddenly, Trump issued an executive order to create a strategic Bitcoin reserve for the US. Initially, this announcement sparked a wave of optimism. But once investors realized the complexities behind the plan, the crypto market resumed its downtrend.

Even though token prices have recently rebounded slightly, it remains unclear whether demand for these assets will recover in the near future.

Why did Bitcoin crash?

The key reason behind Bitcoin's collapse—as well as the downturn of other cryptocurrencies—was the realization that Trump's reserve order did not involve large-scale government purchases of Bitcoin.

Instead, the fund would be formed through the seizure of cryptocurrencies from criminal and civil cases, rather than direct acquisitions.

Many traders had expected a more aggressive government buyback program. When those expectations were not met, disappointment led to widespread Bitcoin and altcoin sell-offs.

Will crypto demand recover?

Despite these developments, hope still lingers in the market that conditions may soon improve, sparking renewed interest in tokens.

But will this actually happen?

Unlike fiat currencies, stocks, and other financial instruments backed by real economies, factories, commodities, and production capacity, tokens lack intrinsic value. Their price fluctuations depend purely on supply and demand dynamics, rather than economic fundamentals. For now, the market remains optimistic, but there is a real risk that this optimism could turn into disillusionment.

Trump's real priorities: strengthening the dollar, not crypto

It's important to remember that both President Trump and his allies represent the real sector of the US economy—industries that build houses, manufacture military equipment, extract oil, and refine it into petroleum products. For them, tokens hold little practical value. Yes, crypto assets may be used to shift part of the US national debt onto unbacked digital assets, encouraging investors to purchase it in tokenized form. However, Trump has repeatedly stated that he will defend the US dollar, ensuring its global dominance as the world's reserve currency. He has made it clear that he will not tolerate competition from the euro, the world's second-largest reserve currency. Given this stance, is it realistic to expect Trump to champion tokens that lack real value? Highly doubtful.

A shift toward real assets?

Reviving the US economy requires tangible assets—not virtual ones. For now, the market still believes in the potential of cryptocurrencies. However, if sentiment shifts and investors realize that this optimism is misplaced, token prices could plummet further, triggering a mass exodus into real assets such as stocks, bonds, and commodities. This could lead to a long-term, severe decline in token prices—potentially returning them to levels seen a decade ago.

Daily forecast for Bitcoin & Ethereum

This image is no longer relevant

This image is no longer relevant

Bitcoin is currently trading below the resistance level of $82,460. If Bitcoin fails to break above this level, demand could weaken further, leading to a decline toward $78,126.

Ethereum is currently trading above the support level of $2,043.70. If Ethereum falls below this threshold, further declines toward $1,751.65 could follow.

Pati Gani,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

GBP/USD Overview – May 19: What to Expect from U.S. Inflation?

The GBP/USD currency pair continued to move sideways on Friday, a trend that has persisted for a month. As the 4-hour chart clearly illustrates, the price mostly moves sideways. While

Paolo Greco 04:42 2025-05-19 UTC+2

EUR/USD Overview – May 19: The Trade War Slows Down the Dollar

The EUR/USD currency pair traded with a slight decline on Friday, and overall volatility has decreased after the "crazy April." The U.S. dollar has been strengthening for over a month

Paolo Greco 04:42 2025-05-19 UTC+2

U.S. Dollar. Weekly Preview

There won't be many important news events in the United States in the coming week—unless one attempts to uncover what's happening in the Oval Office. It's been this

Chin Zhao 00:35 2025-05-19 UTC+2

British Pound. Weekly Preview

The British news background for the upcoming week will be about the same low significance as the European one. However, one report in the UK cannot be ignored—the Consumer Price

Chin Zhao 00:35 2025-05-19 UTC+2

Euro Currency. Weekly Preview

As has become the norm in recent months, the economic news background exerts very little influence on financial instruments. Donald Trump and his trade policy remain the primary market driver

Chin Zhao 00:35 2025-05-19 UTC+2

USD/JPY. Analysis and Forecast

The bulls of the Japanese yen have not been significantly affected by the disappointing GDP report for Japan's first quarter. This is largely due to growing expectations that the Bank

Irina Yanina 18:38 2025-05-16 UTC+2

XAU/USD. Analysis and Forecast

Gold is experiencing renewed intraday pressure, falling below the key psychological level of $3200 during the first half of the European session on Friday. Optimism surrounding the trade truce between

Irina Yanina 18:37 2025-05-16 UTC+2

Market gets lost in crowd

Investors are so confident that Donald Trump is following the stock market's lead that the S&P 500 no longer needs a reason to rise. The broad equity index had been

Marek Petkovich 11:40 2025-05-16 UTC+2

Japan on the Brink of Recession

The GDP report published on Thursday revealed that Japan's economy contracted by 0.7% year-over-year in the first quarter—its first annual decline in the past year and significantly worse than expected

Kuvat Raharjo 11:00 2025-05-16 UTC+2

Investors Continue Digesting the Impact of the Tariff Truce Between the U.S. and China (There Is a Chance of Renewed Corrective Decline in Gold and Oil Prices)

Markets have fully priced in the outcome of the U.S.–China talks, which resulted in a 90-day trade truce. Weaker-than-expected U.S. economic data offset the early-week optimism. The recent rally lost

Pati Gani 10:49 2025-05-16 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.