Cryptocurrency investors are buckled in for another round of volatility as Bitcoin, Ethereum, and Dogecoin continue to experience major price swings. Amid growing concerns over U.S. trade tariffs and shifting market sentiment, these three megacap tokens have seen drastic movements in the past few days, with Ethereum standing out as the biggest mover today.
Bitcoin and Dogecoin Struggle While Ethereum Surges
Bitcoin and Dogecoin are once again in the red, down 2.65% and 6.51% respectively, while Ethereum has defied the trend, posting a notable 3.8% gain since late last week. The divergence in price action comes as investors digest recent developments, including U.S. trade policy uncertainty and notable endorsements from high-profile figures.
Bitcoin, currently trading at around $98,112, has struggled to regain momentum after dipping as low as $95,754. Its price remains well below its 52-week high of $109,314. Dogecoin, which often trades in tandem with broader market sentiment, has also faced selling pressure, dropping 3.5% since Friday. Meanwhile, Ethereum has been the standout performer, bouncing back sharply from a drop to $2,400 and now hovering near $2,721.
Trump’s Tariff Decisions Shake Crypto Markets
Investors have been closely monitoring how the crypto market reacts to policy decisions from the U.S. government, particularly former President Donald Trump’s stance on trade tariffs.
• The announcement of tariffs on Canada, Mexico, and China initially sent risk assets, including cryptocurrencies, into a tailspin.
• A subsequent report suggesting that tariffs on Mexico and Canada would be paused for a month helped trigger a market-wide recovery.
• The U.S. dollar’s recent volatility has also played a role in crypto price swings, further highlighting Bitcoin’s increasing correlation with traditional risk assets.
Ethereum’s strong performance relative to its peers suggests investors are paying closer attention to external factors, including comments from influential figures.
Eric Trump’s Endorsement Fuels Ethereum’s Rally
One of the most intriguing catalysts behind Ethereum’s sharp recovery has been a surprising endorsement from Eric Trump. In a post on social media platform X, Trump encouraged followers to consider adding Ethereum to their portfolios.
The comment sparked immediate speculation, given the Trump family’s involvement in the crypto space. Ethereum serves as the foundation for the Trump-backed World Liberty Financial platform, adding another layer of interest to its recent surge.
This isn’t the first time crypto prices have reacted to political commentary. Over the years, digital assets have increasingly found themselves at the center of political debates, with both regulatory threats and endorsements influencing market sentiment.
Bitcoin’s Strategic Role in U.S. Policy Discussions
Bitcoin has remained a topic of interest in broader policy discussions, particularly regarding its potential role in U.S. financial strategy. Recent reports suggest that the government is exploring the idea of a strategic crypto reserve, with Bitcoin being the primary asset under consideration.
Though details remain sparse, the notion of the U.S. stockpiling Bitcoin—possibly alongside Ethereum—has added another speculative layer to the current market environment. This raises important questions about how future regulations might impact institutional and retail investors alike.
Crypto Liquidations Hint at More Volatility Ahead
Derivatives data shows that liquidations in Bitcoin, Ethereum, and Dogecoin have been predominantly skewed toward short positions in recent days. This suggests that the recent surge in Ethereum could be partly driven by a short squeeze, where traders betting against the asset were forced to cover their positions, pushing prices higher.
A closer look at liquidation trends indicates:
• A significant number of short positions in Ethereum were wiped out, contributing to its rapid climb past $2,900.
• Bitcoin and Dogecoin, while also seeing short liquidations, have not experienced the same level of aggressive buying pressure.
• Market participants are now watching for potential breakouts or retracements as volatility remains high.
Ethereum’s ability to sustain these gains will largely depend on continued buying interest, macroeconomic factors, and further political developments.
What’s Next for Bitcoin, Ethereum, and Dogecoin?
Despite recent gains, crypto investors remain cautious as broader market conditions continue to shift. With stocks rebounding from last week’s losses, the question remains whether Bitcoin and Dogecoin can catch up to Ethereum’s momentum.
For now, all eyes are on key resistance levels. Bitcoin must reclaim the $100,000 mark to regain bullish sentiment, while Ethereum’s next major hurdle sits at $3,000. Dogecoin, known for its high volatility, will need stronger support levels to reverse its recent decline.
As political uncertainty and macroeconomic factors continue to shape market direction, investors should brace for more sharp moves in the days ahead.