There is a massive wave of sell-offs in the digital assets segment, against which #bitcoin has fallen below the $90,000 mark. At the same time, many major cryptocurrencies are also experiencing significant pressure. In such conditions, fear has prevailed among investors.$BTC
This is supported by the sentiment index of market participants. Currently, the indicator stands at 25%. Such a situation is often observed during significant market fluctuations, after which a recovery phase is frequently seen.
Several analysts note that the current situation offers opportunities to open long positions at more favorable prices. Technical metrics also indicate that the crypto market is currently heavily oversold. However, there are several factors that may significantly limit the growth of most digital coins.$BNB
Market participants are primarily concerned about a trade confrontation that could occur with the US and several countries at once. During a recent speech, Donald #TRUMP emphasized his administration's intention to raise tariffs on goods from Canada and Mexico to 25%.
At the same time, there is also confrontation between the US and China. The PRC has already taken a number of retaliatory measures to strengthen its position in potential negotiations. In such conditions, the likelihood of rising inflation in the United States is high. Against this backdrop, the chances that the Fed will be ready to lower the key refinancing rate are significantly reduced.
Experts from Bank of America have commented on this. In their opinion, it is not worth expecting a softening of monetary policy in the US this year. Moreover, it cannot be ruled out that in 2026 the economic situation will not be conducive to this. This situation will remain a key factor putting pressure on most digital coins.
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