Ethereum has been holding up well compared to the rest of the DeFi space, but the recent news that the second-round of stimulus checked proposed by the House was rejected by Trump has changed that.
The top-ranked altcoin just took 3% off its value in a matter of thirty minutes or less following the tweet making rounds. What does this mean for Ethereum and the already suffering DeFi space?
ETHUSD Falls 3% In Less Than 30 Minutes Following Stimulus Cancellation | Source: TradingView
Ethereum Falls 3% Sharply Following Further Stimulus Stagnancy
Ethereum price followed along with Bitcoin and stocks in plummeting after markets caught wind that US President Donald J. Trump had ended any chances of a second stimulus effort before the coming election this November.
The Senate and the House have been locked in battle preventing any version of the bill from being passed. A recent adjustment to the proposal passed by the House, according to Trump, won’t see the light of day.
…request, and looking to the future of our Country. I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business. I have asked…
— Donald J. Trump (@realDonaldTrump) October 6, 2020
In a tweet, Trump says he is rejecting the request, and holding off any stimulus until after he “win[s].”
In response, Bitcoin fell $200 and Ethereum dropped by $10 or 3% in a matter of minutes. On shorter timeframes, the cryptocurrency can be seen setting a lower low above as a result of the news breaking.
Related Reading | DeFi Overtakes Ethereum In The Media, Data Shows
Ethereum was among the assets that fared the best following the last round of stimulus, offering anyone who took their $1,200 and put it into ETH earning a substantial ROI.
Ethereum surged over the summer months due to the DeFi trend, but with no more stimulus…