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Crypto market crash today: reasons why altcoins are going down
The crypto market crash accelerated during the weekend, with $BTC moving below the key support level at $80,000 đ» for the first time in months. It was trading at $78,678 on Sunday đ, down sharply from its all-time high of $126,300 đâĄïžđ.
$ETH price crashed to $2,400 â ïž, while $BNB fell to $770 đ„. The market capitalization of all tokens dropped by over 5.80% in the last 24 hours â±ïž to $2.67 trillion . This article explores some of the top reasons behind the ongoing crypto crash đ.
Crypto market crash happened after Trump nominated Kevin Warsh đïž
One of the main reasons behind the ongoing crypto market crash is that Donald Trump nominated Kevin Warsh to become the next Federal Reserve Chair when Jerome Powellâs term ends in May đ .
Warsh has recently supported the crypto industry đȘ. However, his support was likely because he really wanted the Federal Reserve Chairman job đŻ as he has previously blasted the industry â.
The same is true with his views on interest rates đ. In his recent interviews, he has come out in support of lower interest rates đ. In reality, however, Warsh has always been an interest rate and inflation hawk đŠ .
He voted against interest rate cuts and quantitative easing policies in 2011 âł. Most importantly, he has always maintained his opposition to quantitative easing đ«đ°.
Therefore, analysts believe that Warsh will maintain a hawkish view đŠ when he moves to the Federal Reserve just as Jerome Powell did â ïž.
Soaring liquidations fuelled the crypto crash đŁđ
The other main reason for the crypto market crash is the soaring liquidations đ„ and falling futures open interest đ.
Data compiled by CoinGlass đ shows that the futures open interest dropped by 10% in the last 24 hours â±ïž to $113 billion đ”.
At the same time, liquidations jumped by 348% đ in the last 24 hours to over $2.5 billion đ„, the biggest increase in months â.
Ethereum liquidations jumped to over $1.1 billion â ïž, while Bitcoin rose to over $785 million đŁ. Solana positions worth over $197 million đ, while XRP positions worth $61 million â were liquidated.
These liquidations brought memories of October 10 đ§ when the crypto market experienced the biggest liquidation on record đ. Positions worth over $20 billion đ were wiped out on October 10 when Donald Trump threatened to impose tariffs on China đšđłâ ïž.
Rising geopolitical tensions đđ„
The crypto market crash is happening because of the rising geopolitical tensions between the United States and Iran âïž. Trump has threatened to attack Iran soon đš because of the recent protests in the country đȘ§.
An attack on Iran would be bearish for the crypto market đ because of the impact on the energy market âĄ. Data shows that Brent, the global benchmark đąïž, has jumped to $70 for the first time in months đ.
The crypto market crash is also happening because Bitcoinâs role as a safe-haven asset has been debunked âđĄïž. Instead, investors have moved to other safe-haven assets like the Swiss franc đšđ and gold đȘ, which have soared in the past few months đ.
Bitcoin price technicals have contributed to the crash đâ ïž
Technicals have also contributed to the ongoing crypto crash đ§©. The weekly timeframe chart above shows that the coin formed a rising wedge pattern đ.
It also formed a bearish flag pattern đ©, and moved below the 50-week Exponential Moving Average (EMA) đ and the Supertrend indicator đ». This pattern often leads to more downside âŹïž, which will lead to more downside for Bitcoin and the crypto market â ïžđ.
$ETH price crashed to $2,400 â ïž, while $BNB fell to $770 đ„. The market capitalization of all tokens dropped by over 5.80% in the last 24 hours â±ïž to $2.67 trillion . This article explores some of the top reasons behind the ongoing crypto crash đ.
Crypto market crash happened after Trump nominated Kevin Warsh đïž
One of the main reasons behind the ongoing crypto market crash is that Donald Trump nominated Kevin Warsh to become the next Federal Reserve Chair when Jerome Powellâs term ends in May đ .
Warsh has recently supported the crypto industry đȘ. However, his support was likely because he really wanted the Federal Reserve Chairman job đŻ as he has previously blasted the industry â.
The same is true with his views on interest rates đ. In his recent interviews, he has come out in support of lower interest rates đ. In reality, however, Warsh has always been an interest rate and inflation hawk đŠ .
He voted against interest rate cuts and quantitative easing policies in 2011 âł. Most importantly, he has always maintained his opposition to quantitative easing đ«đ°.
Therefore, analysts believe that Warsh will maintain a hawkish view đŠ when he moves to the Federal Reserve just as Jerome Powell did â ïž.
Soaring liquidations fuelled the crypto crash đŁđ
The other main reason for the crypto market crash is the soaring liquidations đ„ and falling futures open interest đ.
Data compiled by CoinGlass đ shows that the futures open interest dropped by 10% in the last 24 hours â±ïž to $113 billion đ”.
At the same time, liquidations jumped by 348% đ in the last 24 hours to over $2.5 billion đ„, the biggest increase in months â.
Ethereum liquidations jumped to over $1.1 billion â ïž, while Bitcoin rose to over $785 million đŁ. Solana positions worth over $197 million đ, while XRP positions worth $61 million â were liquidated.
These liquidations brought memories of October 10 đ§ when the crypto market experienced the biggest liquidation on record đ. Positions worth over $20 billion đ were wiped out on October 10 when Donald Trump threatened to impose tariffs on China đšđłâ ïž.
Rising geopolitical tensions đđ„
The crypto market crash is happening because of the rising geopolitical tensions between the United States and Iran âïž. Trump has threatened to attack Iran soon đš because of the recent protests in the country đȘ§.
An attack on Iran would be bearish for the crypto market đ because of the impact on the energy market âĄ. Data shows that Brent, the global benchmark đąïž, has jumped to $70 for the first time in months đ.
The crypto market crash is also happening because Bitcoinâs role as a safe-haven asset has been debunked âđĄïž. Instead, investors have moved to other safe-haven assets like the Swiss franc đšđ and gold đȘ, which have soared in the past few months đ.
Bitcoin price technicals have contributed to the crash đâ ïž
Technicals have also contributed to the ongoing crypto crash đ§©. The weekly timeframe chart above shows that the coin formed a rising wedge pattern đ.
It also formed a bearish flag pattern đ©, and moved below the 50-week Exponential Moving Average (EMA) đ and the Supertrend indicator đ». This pattern often leads to more downside âŹïž, which will lead to more downside for Bitcoin and the crypto market â ïžđ.
Avertissement : ce contenu inclut des opinions de tiers. Il ne constitue pas un conseil. Binance Ai peut ĂȘtre utilisĂ©e, sans garantie de rĂ©sultat. Consultez les CG.