What happened in the cryptocurrency market?
Markets started the new week in a panic, as investors woke up to a sharp drop in the market value of cryptocurrencies. Bitcoin fell to $91,500, after being above $105,000 before the weekend. But the coin has now managed to recover some of the losses, trading at $96,000.
Ethereum, on the other hand, has seen a 20% drop, which has investors worried about its performance. Although the market has seen such declines in the past, this time is different, given the large amount of liquidity that has been withdrawn from the market, with liquidations exceeding $2 billion during the period. The cryptocurrency market witnessed a sharp decline last night, as its market value fell by 13%, falling from $3.6 trillion to $3.12 trillion. Bitcoin fell below $91,500, while Ethereum fell below $2,500, which has raised great concerns among investors. Is the bull run over? Or is this just a tempting buying opportunity? To get an advertising service for crypto projects briefly, a level that we have not seen even in crises such as the collapse of FTX or the Covid-19 crisis.
Analysts suggest that the reason behind this sudden decline may be US President Donald Trump's announcement of new tariffs on several countries, including Canada, Mexico (25) and China (10), in addition to the intention to impose additional tariffs on the European Union.
These decisions had a severe impact on global markets, with European indices recording significant declines.
The biggest winners in this storm were gold and the US dollar, as investors turned to them as safe havens in the face of economic fluctuations.
Is this the end of the bullish wave or just a correction?
Despite the sharp decline, analysts believe that Bitcoin is still within its usual trading range, and has not yet reached the “market top” that usually leads to a real collapse.
According to analyst Coban, the market may simply be going through a healthy correction, not necessarily the end of an uptrend. The massive liquidations show how unbalanced the market is, but they don’t mean Bitcoin has completely lost its momentum.
“Glassnode data suggests that the market saw $50 million worth of liquidation in just one hour when Bitcoin touched $92,000. Such pullbacks are usually ideal buying opportunities before an uptrend resumes.”
For his part, technical expert Vincent Ganne confirmed that the current scenario indicates a retest of the previous resistance level, and not necessarily the end of the upward wave.
“No analytical model has given an indication of the end of the bull market, be it the Pi Cycle Top, the MVRV model or even the Stock-to-Flow Zscore. Historically, major bull runs end in the year following the halving, which means the expected market top will be in 2025.”
Upcoming Predictions: Will Altcoins Rebound?
Many investors believe that altcoins have not yet benefited sufficiently from the bull run, as they continue to underperform compared to Bitcoin.
But if Bitcoin continues to recover its previous levels and succeeds in breaking through major resistance, altcoins may finally start to catch up, which could lead to the long-awaited altcoin bull season.
