The cryptocurrency market briefly surged to nearly $2 trillion following pro-crypto signals from the Trump administration, including bank crypto custody permissions and a stablecoin framework law.
However, the rally proved short-lived, with cyclical selling, leverage liquidations, and macroeconomic pressures driving a subsequent pullback to previous levels.
The episode underscores the delicate balance between regulatory developments and broader economic conditions, highlighting the challenges investors face amid crypto market volatility.