The post Crypto Price Prediction: Debates Over a U.S. Crypto Reserve and Its Impact on Prices appeared first on Coinpedia Fintech News
Crypto discussions are heating up, with social platforms reacting to major political and economic moves. Negative sentiment around Trump is rising, with concerns that his policies—like tariffs and a proposed U.S. Crypto Strategic Reserve—could manipulate markets. Investors worry that tariffs on Canada, Mexico, and China may fuel volatility across crypto and stocks.
Meanwhile, debates surge over the legitimacy of a U.S. crypto reserve, with skepticism about which assets—Bitcoin, Ethereum, XRP, Solana, or Cardano—should be included. Market fluctuations continue, as uncertainty around these developments keeps traders on edge.
Hence, the crypto market remains in a state of uncertainty as Bitcoin struggles to maintain its footing, dropping below $91K again and now hovering around $85 K. While institutional adoption and regulatory advancements continue, short-term price action remains shaky, according to blockchain analytics firm Nansen.
Altcoins Take a Beating, AI Tokens Suffer Worst Losses
Most Layer 1 projects have suffered double-digit losses YTD, with XRP (+5.3%) being the sole exception. BTC (-7.87%), TON (-7.94%), and TIA (-9.55%) have all faced declines.
Layer 2 (L2) solutions and AI tokens have been hit hardest, with L2s down over 40% year-to-date and some AI-focused tokens plunging nearly 90% from their highs. The only exceptions in this downturn are Maker (MKR), which has gained 10%, and XRP, which is up 5%.
Ethereum’s on-chain activity has slowed significantly, with median gas fees dropping to 1 GWEI, the lowest in over a year. While Ethereum’s Layer 2 networks like Base remain active, overall market participation appears to be dwindling.
DeFi tokens also struggled, except for MKR (+10.85%), which has benefited from USDS adoption. Other DeFi projects, such as ENA and AERO, have been among the biggest losers, down over 50% YTD.
What’s Next?
Market sentiment is split—some see the current price action as a bearish retest, while others believe a recovery is underway. BTC’s re-entry into its previous range suggests the latter is more likely. Many tokens have retraced gains from the election-driven rally and may take time to recover. With weak price action across major sectors, Nansen’s analysts remain neutral to bearish in the short term but optimistic in the long run. Many traders are focusing on stablecoin yield farming rather than chasing altcoin pumps, waiting for a clearer trend reversal before making major moves.
For now, Bitcoin is back in its previous range, and sentiment remains mixed. Some see the current dip as an opportunity to accumulate core assets like BTC, SOL, and TIA, while others believe a further downside is possible. Until a clearer trend emerges, the market remains in a holding pattern
