Crypto Market Dip Explained – And What’s Ahead
The crypto market is under pressure today, with Bitcoin hovering around $104.9K (down ~2.6%) . This pullback is driven by several key factors:
1. Geopolitical Turmoil
Israel's military airstrikes on Iran have unsettled global markets, triggering a sharp risk-off sentiment. Bitcoin dropped nearly 4% amid fears of broader conflict .
2. Mass Liquidations
Over $1.16 billion in leveraged crypto positions were liquidated in just 24 hours—dominated by long liquidations—amplifying the downward pressure .
3. Fed Rate Policy Shift
Disappointing U.S. inflation data has erased expectations of a June Fed rate cut. With rate cut hopes dashed, crypto lost some of its recent tailwinds .
Simple pullback? Technically, yes. $BTC has wiped out gains and dropped below key support zones around $106K–$108K. The next critical support lies between $100K–$102K, but if that holds, we could see consolidation and a bounce back.
What Comes Next?
If geopolitical shocks subside and the dollar weakens, crypto may start recovering.
Continued ETF inflows could return as inflation cools.
Watch for BTC reclaiming $106K—this will be a telling sign.
History shows that corrections in bull markets are healthy—and oftentimes a catalyst for the next rally. Stay calm, stay informed.
#CryptoMarket #Bitcoin #MarketAnalysis
Not financial advice.
