The market always operates through stories, one story will end and another will begin, and currently, the story is about tariffs. It sounds very serious, but everything will pass, and people will forget like many times before. The crypto market in the recent past has mostly been influenced by long-term positive news, and the price drop is mainly due to the bad economic situation. News about tariffs raises concerns about the possibility of a trade war -> directly affecting traditional markets + stocks, and indirectly affecting crypto.

Last year, when $BTC crashed from 70k to 49k (a decrease of about 30% - similar to now), it was the story of Yen Carry Trade. At that time, the market was worried about the possibility of prices continuing to plummet if the BOJ raised interest rates -> investors had to close their JPY borrowing positions, leading to a sell-off of other assets, including stocks + crypto. Liquidity would tighten and the risk of a financial crisis/global recession would arise. In the end, good news came out, the story passed, and now hardly anyone remembers it.

In 2023, when the FED is raising interest rates and a few major banks in the US collapsed, people were also worried about a recession, the S&P 500 dropped about 10% + $BTC decreased about 25% (quite similar to now). Everyone thought the market would continue to decline sharply, completely dead, but then the market recovered and grew again, and the story ended.

This time will be similar 👍