THE MARKET STARTS IN THE RED
BTC briefly touched 84,000$ on Sunday, a key resistance level for a potential bullish recovery towards 90,000$. However, the leading crypto collapsed around 83,300$ this Monday. Additionally, major cryptos like XRP, SOL, ADA, and DOGE also dropped by 5%, while BNB held firm with a 3% increase.
This correction occurs within a broader situation marked by tariffs imposed by the United States and a deterioration in macroeconomic conditions. Some crypto analysts are concerned about a possible recession in the United States, with increased tensions in the financial markets.
According to several experts, the recent crypto correction could be attributed to a massive liquidation of positions by multi-strategy funds. These funds use various tactics, such as arbitrage, long/short positions, and leverage to maximize their returns.
So far, the price of ETH remains closely correlated to BTC movements. The weakness of the ETH/BTC ratio shows that Ethereum is struggling to assert itself, despite promising technological advancements. The evolution of certain critical levels will be decisive for market dynamics in the coming weeks.
The current volatility in the crypto market therefore reflects fragility in the face of macroeconomic uncertainties and liquidations from multi-strategy funds. While Bitcoin attempts to stabilize its support, Ethereum remains dependent on its momentum. The coming days will be crucial to determine whether the market can rebound or head towards a deeper correction, as indicated by the threats of recession and tariffs on the bull run.