Is Crypto Bull Run Over?
The crypto market is now in turmoil in amid global economic policies and extensive liquidation. The recent wave of volatility has caused the total capitalization of crypto market capitalization to fall by 7.48%, reducing it to $2.91 trillion.
This sudden drop shocked traders, the index of fear and greed fell to 29, deep in the field of fear, sitting in yesterday’s 40 neutral 40. Bitcoin lost its critical $90,000 support level and is now trading at $89,652.23. Although its dominance rose to 61.39%, its market capitalization shrank to $1.77 trillion.
Meanwhile, Ethereum fell 10.37% to $2,410, while Solana and XRP plummeted further, losing 12.6% and 10.67% respectively. The problem is imminent. What is behind this keen sell-off, and where does the market move from here?
Trump’s tariff plan and its impact
The catalyst behind this downturn is traced back to the recent announcement by U.S. President Donald Trump on 25% tariffs on Canadian and Mexico imports. Trump spoke with French President Emmanuel Macron on February 24, and despite growing economic concerns, he reiterated his commitment to these tariffs.
The shock wave has been felt in the wider financial markets. The S&P 500 has fallen 2.3% in 2.3% over the past five trading days, while the Nasdaq Comprehensive has fallen 4%. Because investors have adopted a risk-taking approach, they are not yet spared. The turmoil caused a massive liquidation of more than $900 million in just a few hours. Heating map Small shop The highest clearing cryptocurrency for sightings is outlined below.
How low are the top cryptocurrencies falling?
Analysts warn of further downside risks due to uncertainty, especially for major altcoins. An important factor in this sell-off is Binance’s recent massive offload of Ethereum, Solana, Trump and other assets. As the world’s largest exchange liquidates a large number of holdings, fears of a long-term recession have become stronger.
Famous analyst Capo recently appeared X Postswarns that Ethereum could drop to 1,800-$2,100 if it fails to maintain its crucial $2,381 support. Bitcoin, on the other hand, is staring at a possible $85,000 test before hope of recovery emerges. If these levels break, deeper corrections may be made.
The road to recovery: This is the future!
Despite the persistent bearishness, hope remains. If key conditions remain consistent, market recycling is still touching. The first key step is that Bitcoin’s ground is $85,000. Relief rally can be achieved if institutional investors step in under pressure to repurchase.
A good example is the strategy, which recently acquired 20,356 BTC for about $1.99 billion, with an average price of $97,514 per Bitcoin. The company now has an impressive 499,096 BTC, totaling $33.1 billion, with an average cost of $66,357 per BTC. Other institutional players who follow suit may lead to Bitcoin’s regaining status.
However, macroeconomic conditions due to rising tariffs have exacerbated ongoing sales pressures, which could push the market to an extended merger phase. In this case, Bitcoin may remain range-limited, while altcoins continue to track downwards.
Healthy correction or did the bull run away?
Although fear and uncertainty make the market go so far, experienced analysts believe that this correction may be a necessary motivation before another leg. Some experts believe that despite the current turmoil, Bitcoin’s long-term bullish trajectory remains intact. If institutional interests rise and the market absorbs ongoing selling pressure, a reversal may be seen.
