Key Points
- Bitcoin and the broader crypto market face a downturn due to economic uncertainty and Trump’s tariffs.
- Massive liquidations and the Bybit hack have intensified panic, further impacting the crypto market.
The crypto market is experiencing a downward spiral following a short-lived recovery from the turbulence caused by Donald Trump’s tariff imposition on Canada and Mexico. This comes after Trump’s decision to enforce a 25% tariff on the European Union during his initial cabinet meeting.
Bitcoin’s Market Condition
CoinMarketCap’s latest data reveals a 3.61% decline in the global crypto market capitalization in the last 24 hours, currently standing at $2.83 trillion. Bitcoin (BTC) reflects the wider market sentiment, trading at $86,112.34 after a 3.01% drop, marking its third day of consecutive losses. However, there might be further corrections before the market stabilizes.
Analysts’ Perspectives
Independent market analyst Scott Melker sees a bullish divergence with an oversold RSI still in play. As Bitcoin hovers around the $80,000 range, the Crypto Fear & Greed Index has dropped to 10, its lowest level in a year, indicating “extreme fear.” Traders are divided over Bitcoin’s potential stable floor, with many foreseeing a bottom between $80,000 and $71,000.
Data from Velo on X (formerly Twitter) indicates Bitcoin’s worst three-day performance since 2022, along with significant capital outflows from spot BTC ETFs. Additionally, the Trump administration’s plans for large-scale layoffs have added to the economic uncertainty, triggering a sell-off in U.S. equities.
The crypto market has also been hit by a massive wave of liquidations, with $340 million wiped out in an hour and over $150 billion lost in the past 24 hours. The recent Bybit hack, which resulted in a staggering $1.4 billion loss, has further shaken investor confidence. Amid these events, it remains uncertain whether Bitcoin will find new support or continue its decline.
