Orange Briefing | Why Did the Crypto Market Drop Today?

Today, the overall sentiment in the cryptocurrency market is bearish, with a total market capitalization down by $83 billion, and BTC has also failed to hold above $115,000. The reasons mainly include two points:

1. Macroeconomic Factors: Trump Announces New Tariffs, Sparking Market Risk Aversion

This news directly impacted risk assets. It is normal for cryptocurrencies, as high-risk assets, to be the first to take a hit. As risk aversion rises, the overall market capitalization declines.

2. New LST Regulations and FTX Lawsuit Impact

The SEC released vague guidance on liquid staking tokens, which, although slightly more lenient than before, still lacks confidence; FTX has also started causing trouble, suing Zhao Changpeng for $1.76 billion, and the market does not like this kind of uncertainty.

Total Market Capitalization Trend:

Currently, TOTAL is around $3.65 trillion, and it has held the support at $3.61 trillion in the short term, but if it fails to hold again, we need to look at $3.49 trillion below. To reverse the downward trend, it must break through the resistance level of $3.73 trillion.

Bitcoin Trend:

BTC is still stuck in the range of $113,000 – $115,000:

If it falls below $111,187, it will be a new low for the month, confirming the bearish trend;

If it can strongly reclaim $115,000, we can see a rebound target of $117,261.

Orange's Summary of Views:

The risk in the broader environment is increasing, and short-term uncertainty is rising;

BTC must hold above $111,000, otherwise it will further decline;

If we want a rebound, we need to see if it can break through $115,000 with strong volume.

Currently, it is recommended to mainly watch and wait, be cautious about chasing the rise, and patiently wait for signals.