According to F2pool data, mining machines such as Shenma M30S, Avalon A1246, and Antminer S17 Pro have all reached the shutdown price. In addition, mining machines such as Grayscale G7, Hippo H2, and Antminer T19 are close to the shutdown price. Generally speaking, the shutdown of mining machines means that a short-term "bottom" has been reached.
Cryptocurrency markets fell slightly on Tuesday after U.S. President Donald Trump announced a 25% tariff on imported steel and aluminum.
According to Bitpush data, Bitcoin fell 1.63% in the past 24 hours and is currently trading below $96,000, while Ethereum fell 2.12% to around $2,600. XRP and Solana (SOL) did not fluctuate much.
In the past 24 hours, the total market value of cryptocurrencies fell by 0.98% to $3.15 trillion. According to CoinGlass data, the total amount of liquidation in the entire crypto network during the same period reached $233 million, mainly long orders, equivalent to about $149 million.
Trump tariffs and macroeconomic uncertainty
Tracy Jin, vice president of cryptocurrency exchange MEXC, attributed the market's movement primarily to the Federal Reserve's recent decision to keep interest rates unchanged and broader macroeconomic concerns. In times of uncertainty, investors tend to seek safer assets, such as gold or the U.S. dollar, which is usually accompanied by a decline in interest in risky assets, including cryptocurrencies.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said in a note on Tuesday that history shows trade war fears sparked by tariff threats tend to "come and go quickly, but this time around, smart money isn't so sure; currency, bond and commodity traders are hedging their bets, with the dollar, Treasury yields and gold prices rising as tensions heat up."
Joel Kruger, currency strategist at LMAX Group, believes this is more about the market getting reacquainted with Trump's tactics rather than any substantive risk associated with extreme tariff measures.
Joel Kruger believes: "While the new announcement may bring short-term volatility, we do not believe this risk will cause any major turmoil, and expect crypto assets to continue to be well supported by medium- and long-term players looking to buy on dips."
The $92,000 support level is key
Checkonchain data shows that the market value to realized value ratio (MVRV) of short-term holders (STH) has dropped to 1.05.
MVRV is a key indicator to measure the profitability of Bitcoin holders. When MVRV is above 1, it indicates that investors are still in a profitable state; below 1 means that investors are losing money. The current MVRV has dropped to 1.05, indicating that the profit space for short-term holders is shrinking. If MVRV drops further, it may put more pressure on Bitcoin prices because it means that more short-term holders are close to the break-even point.
Currently, the MVRV is still above 1, indicating that the selling pressure from short-term holders is not significant yet. However, the focus is on the cost basis of short-term holders, which is around the $92,000 level. This price is a key support level for Bitcoin prices, reflecting the average cost of buying BTC for short-term investors. A drop towards $92,000 could spark more selling as short-term holders cut losses. A break below this support level could further deteriorate market sentiment, leading to an accelerated decline in prices.
In addition to the MVRV indicator, liquidity areas are areas where a large number of orders are concentrated, which usually act as support or resistance. Bitcoin has recently hit lows several times to absorb liquidity, and the current price is hovering below $94,000, which is also an important liquidity area. If this pattern continues, Bitcoin may further drop to $92,000. If this key support level cannot be maintained, selling by short-term holders may increase downward pressure.
