Why Is Crypto Crashing Today?
The cryptocurrency market is facing huge selling, which has eliminated more than $ 400 billion in sales in only 24 hours. Bitcoin, Ethereum, XRP and Dogecoin, etc., have been hit, some of which have fallen by nearly 20 %. But what caused a sudden collapse? Let’s study the key reasons behind the turbulence.
Trump’s tariff war has inspired fear
One of the biggest reasons for the market is the recent trade war recently caused by Donald Trump. According to the 1977 “International Economic Economic Power Act” (IEPA) announced the state of emergency, Trump applied strict tariff rules, 25 % of Mexico and Canada, and China’s imports were 10 %.
The market responded immediately, worried about rising prices, inflation and economic instability. As a result, the US stock index declined sharply and delayed the cryptocurrency market.
Bitcoin network activity slows down
In addition to external economic factors, Bitcoin’s network activities have greatly declined. From Encrypted program Mempool is almost empty. This means that less transactions are unusual for Bitcoin.
In addition, Bitcoin trading costs are only reduced to 1 SAT/VB, which indicates that the demand for block space is lower. This is the lowest level of activity recorded since March 2024.
The clearing price of cryptocurrencies is US $ 2.18 billion
The market also saw a wave of liquidation, More than 2.18 billion US dollars Cryptocurrency positions with value were eliminated within one day and affected more than 715,000 traders.
The long -term losses suffered the losses of $ 1.85 billion, while the short traders lost about 334 million US dollars. The largest single liquidation occurred on Binance, and a trader lost $ 25.64 million in a transaction.
The more powerful dollar increased the pressure
Another factor that compressed Bitcoin is to enhance the US dollar. The US dollar index (DXY) soared to 108.50, and the fiscal yield of 10 years rose by more than 4.54 %.
Historically, Bitcoin moves towards the opposite direction of the dollar and Treasury yields, which means that more powerful US dollars usually cause BTC prices to decrease.
The key support level of Bitcoin
Currently, Bitcoin is working hard Hold the above $ 93,000Essence If it is less than $ 90,000 psychological support level, analysts warn that further decline may be far ahead. At the same time, the encrypted fear and greed index have fallen to 38, which has changed from neutral to fear.
However, if the BTC manifests it and breaks 95,000 US dollars, it may restore its bullish momentum.
