The cryptocurrency sector is currently witnessing significant selling pressure, causing the total market capitalization to plummet by 7.48%, landing at approximately $2.91 trillion. Bitcoin (BTC) has seen a critical dip, dropping from the $90,000 mark to around $86,000. Ethereum (ETH) faced a 10.37% decline, falling to nearly $2,300. Solana (SOL) and XRP also recorded substantial losses, with declines of 12.6% and 10.67%, respectively.
What Factors Are Influencing This Downturn?
The recent turmoil has been attributed to economic policies announced by U.S. President Donald Trump, including a 25% import tax on goods from Canada and Mexico, which has dampened risk appetite among global investors, heavily impacting the cryptocurrency market.
Will the Market Continue to Decline?
Market analysts suggest that the risk of further declines is high, particularly for major altcoins. The heavy selling pressure instigated by Binance is expected to play a critical role in determining the market’s future trajectory.
Recent observations note the following:
– Over $1.3 billion was liquidated in just 24 hours.
– Ethereum’s support at $2,381 is crucial; if breached, prices could fall to between $1,800 and $2,100.
– Bitcoin risks testing the $85,000 threshold, with potential for more significant losses if it falls below this level.
– Institutional investments, such as a recent purchase of 20,356 BTC by Strategy, could provide some recovery support.
While some experts view the current downturn as a necessary correction that may pave the way for future growth, the ongoing sell-offs and negative global economic signals indicate a prolonged period of instability in the cryptocurrency market, particularly for altcoins. Investors are advised to approach the market with caution as Bitcoin’s value dips closer to critical levels.
