What Goes Up...

After a painful start to the week, the question on many traders' minds is... do we have another 2022 on our hands? Following a -10.5% Bitcoin crash in just 24 hours, there is some legitimate panic and anger circulating across crypto social media.

There was an encouraging rise on Saturday and (in particular on) Sunday with President Trump's announcement of a U.S. Crypto Strategic Reserve. This is part of a bigger effort to strengthen the country's role in digital finance. This followed an order signed in January 2025 that set up a team to create national rules for cryptocurrencies within six months.

The announcement caused cryptocurrency prices to initially jump as optimism soared regarding the possibilities of what this reserve could do for crypto's long-term future. However, markets did a complete reversal on Monday.

Some people questioned why certain cryptocurrencies—like XRP, Solana, and Cardano—were included in the reserve, wondering if the selection process was fair. The government has not yet explained exactly how this reserve will work, how it will be funded, or how it will fit into the financial system. This has left much of the crypto community to resort to comedy and humorous speculation to fill up time before more answers are provided.

More details are expected to be shared at an upcoming White House Crypto Summit, where officials will explain their full plan for the reserve and what it means for the future of digital money in the U.S. But in the meantime, this latest media headline has turned into nothing more than a short-term "buy the rumor, sell the news" event.

Outside of a few outliers, we can see the bloody scene in crypto today. And social volume has begun to swing down as well with the top 3 non-stablecoins (BTC, ETH, XRP) in crypto seeing less discussion Monday than they were over the weekend.

What many have not been mentioning is the fact that part of this quick retrace occurred in tandem with a huge down day for world stock markets. The S&P 500 was hammered for a huge -1.8% drop, which may sound relatively small by crypto standards... but this was among the biggest loss days the US stock markets have seen in the past calendar year.

Sentiment is likely to have a dramatic impact on where we head next, now that we've watched Bitcoin sink back to the low $80K's and Ethereum temporarily dipping below $2K. We are watching mentions of high prices across social media as a signal that a top is near, and this is exactly what we saw on Sunday evening (just as the top hit). Ideally, we will see mentions of low prices (such as $70K-$75K BTC) as a sign we are reaching a bottom due to a lot of retail selling.

Overall, there is definitely a notable level of grief, frustration, and flat-out anger across crypto social media. And this is generally a good sign that we are getting close to the "blood in the streets" moment that cryptocurrencies usually need to begin rallying. We will continue to update the community as outliers emerge.

-----

Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.