In the last 24 hours, the cryptocurrency market has plummeted, with over 1 billion in liquids, and Bitcoin, Ethereum and XRP reaching new support ranges. Global trade tensions, technical analyses and whale sales pressures are the main reasons for the crash.
Despite signs of stability over the past week, the bitcoin-led cryptocurrency market (BTC) is back in a downward phase and is expected to continue in the coming days. In the last 24 hours, the cryptocurrency market has experienced a significant drop in over 1 billion in liquidated transactions, with the bulk of these liquids being related to long positions.
As Western financial markets begin to operate on Monday, there is a possibility of further collapse in the cryptocurrency market. In addition, the negative atmosphere in Asian markets has also exacerbated downward sentiment among investors.
The main reasons for the collapse of the cryptocurrency market today
Concerns about the global trade war
The market-driven bitcoin price, along with Ethereum (ETH) and XRP, has declined significantly in the past 24 hours. This trend is largely due to new concerns about the global trade war. After China imposed counter-tariffs on the United States, other countries such as the European Union and Japan are expected to take similar measures.
As a result, many investors have started to withdraw profits, and some have suffered heavy losses. Technical analysis also shows that this downward trend is likely to continue in the coming days.
Liquidation of high-lever positions
In the last 24 hours, more than 1.01 billion of liquidated cryptocurrency market transactions, of which about 868 million were related to long positions. More than 323,000 traders, including whales, have been affected by these liquids. This has increased the likelihood of long squeeze and led to further price falls.
Technical pressure and macroeconomic concerns
Descending signs in charts
Since Donald Trump's second term, the cryptocurrency market has been embroiled in a downward technical structure. Bitcoin has recently re-touched an important return pattern and is now on track to reach the 60,000 level.
On the other hand, Ethereum prices have also closed below the weekly logarithmic upward trend that had formed since late 2023. This reflects the dominance of bearish sentiment in the Ethereum market, especially as institutional demand for these cryptocurrencies has declined.
Meanwhile, the price of XRP has also surpassed its important support level above 1.9 over the past 24 hours, and is now trading at about 1.77 This price drop has reinforced the likelihood of a continued downward trend for XRP.
Global economic concerns
Cryptocurrency markets have been hit hard by macroeconomic concerns, especially given the growing tensions in global trade wars. According to quinnipedia, the likelihood of a recession in the United States has increased dramatically, and many economists have predicted higher inflation.
The information provided in this article is for informational and educational purposes only and should not be construed as financial, investment or legal advice. We recommend that you conduct independent research and consult a financial or legal advisor before making any investments.
