The current crypto market is facing unprecedented multiple negative pressures, and market sentiment is gradually shifting towards extreme panic. Considering various factors, a significant correction may be imminent, and a bloodbath scenario cannot be ruled out.
🚨Multiple negative factors are emerging, and the market is fraught with crises:
🫣Risk of ancient whales selling off intensifying
On Monday, a wallet address that had been dormant for 11 years suddenly transferred 80,009 Bitcoins, worth over $9 billion, clearly indicating that early holders are no longer choosing to 'never sell.' This potential selling pressure will pose a heavy blow to the market; if a large sell-off occurs, the market may struggle to bear it.
🫣Tariff officially implemented on Monday, macro environment tightening
The US has officially imposed additional tariffs on technology products from China, which took effect on Monday. This means that the global trade situation has worsened again. Safe-haven assets like gold may benefit in the short term, but crypto assets, being high-risk targets, may instead become the first choice for capital withdrawal.
🫣'Big and Beautiful Act' advances, regulatory pressure intensifies
The US Congress has passed the 'Big and Beautiful Act' (FAB Act), imposing stricter KYC and capital review mechanisms on crypto platforms, directly targeting large exchanges and liquidity pools. The market may face a compliance storm, and capital outflows will become a trend.
🫣Political risk intensifying: Musk vs. Trump feud, emergence of the American Party
With Musk announcing the establishment of the 'American Party' and openly clashing with Trump, the uncertainty in the US political landscape has escalated again, further heightening market concerns about the November elections, which in turn affects the risk appetite in the capital markets.
🫣July rate cut expectations fall through, market expectations misaligned
The market originally widely expected the Federal Reserve to signal a dovish stance in July, with even a one-time 25 basis point rate cut not being ruled out. However, recent statements from several Fed officials indicating 'inflation remains resilient' and 'high rates need to be maintained for a period' have completely shattered rate cut expectations. The key point is—this negative news has not yet fully reflected in the coin prices.
🔻Technical and funding double whammy, short-term panic correction hard to avoid: Bitcoin's short-term support level is looking at $90,000; if it falls below this, it will trigger institutional stop losses, leading to a collapse-like drop potentially approaching the $85,000 range. Ethereum, meanwhile, is in a weak rebound phase at a high level; if the market completely collapses, it may test previous lows down to $2,100 or even lower.