Another sharp crypto market crash has occurred, with Bitcoin, Ethereum, Dogecoin, and XRP experiencing significant declines. Analysts attribute the downturn to multiple CME futures gaps that Bitcoin must fill, with a key level at $85,000.
Additionally, another gap at $77,900 suggests that BTC and altcoins could face further declines before stabilizing.
Crypto analyst Hardy highlighted that Bitcoin recently filled a CME gap between $93,500 and $92,700 but still has lower targets to meet. Meanwhile, Titan of Crypto emphasized that BTC historically retraces to fill these gaps, reinforcing expectations of further corrections before a potential rebound. This downturn has impacted altcoins, as their strong correlation with Bitcoin has led Ethereum, Dogecoin, and XRP to suffer similar losses.
Coinglass data indicates that the crash has liquidated over $213 million in long positions within just four hours, while short positions saw $18 million in liquidations.
Adding to the market uncertainty, U.S. President Donald Trump’s announcement of a crypto strategic reserve—including Solana, Cardano, and XRP—has sparked mixed reactions. Many traders had expected Bitcoin to be the sole reserve asset, leading to skepticism about the policy’s long-term impact. While Trump’s statement initially led to a brief market rebound, ongoing doubts are contributing to further volatility.
Additionally, Trump’s announcement of new tariffs—including a 25% tariff on Mexico and Canada starting tomorrow, along with plans to double China’s tariffs from 10% to 20%—has injected further uncertainty into global markets. These economic policies have compounded pressure on the crypto market, causing widespread sell-offs and intensifying bearish sentiment.
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