Cryptocurrencies pared their gains during trading on Wednesday, following US President Donald Trump’s State of the Union address to Congress, amid caution in global markets and investors’ anticipation of the upcoming round of talks between Washington and Tehran in Geneva.
Bitcoin saw a 0.75% increase to reach $64,950, but these gains were limited compared to the jump it recorded before the speech, when it rose by 3.52%, driven by investor expectations and short-term speculation.
Despite the slight rise, Bitcoin is still heading towards its fifth consecutive monthly loss, the longest monthly losing streak since 2018, reflecting continued selling pressure and market volatility related to global economic and political factors, including the course of US monetary policy and developments in the geopolitical landscape.
Other cryptocurrencies also saw slight gains, with Ethereum rising 1.78% to $1,890.58 and Ripple climbing 0.84% to $1.3637.
Dogecoin also recorded gains of 0.73% at a level of $0.095.
The movements of cryptocurrencies reflect the prevailing state of anticipation in the markets, as investors react to US political developments, in addition to concerns related to international relations, which may indirectly affect risk appetite in highly volatile markets such as the digital asset market.
Cryptocurrencies are typically affected by major variables, whether political decisions or economic data, given their heavy reliance on investor confidence and global investment flows.
