Crypto Bloodbath: Top Digital Assets Nosedive Despite Cooling Inflation & China Trade Deal

Market braces for impact as Bitcoin leads brutal selloff

When good news isn''t good enough

Institutional traders dumped positions faster than a hot NFT project - proving once again that crypto markets laugh at traditional fundamentals. The dip comes despite what should''ve been a bullish setup: cooling inflation numbers and a fresh Sino-American trade agreement that would normally send risk assets soaring.

Whale watching turns bloody

Leverage got liquidated faster than a Celsius withdrawal request as BTC sliced through key support levels. Altcoins followed suit - because when Bitcoin sneezes, the whole market catches pneumonia. Meme coins fared worst, naturally.

The silver lining playbook

Veteran traders are calling this a ''healthy correction'' (because what else would you call a 20% haircut?). Meanwhile, diamond hands are loading up - after all, nothing makes crypto bros happier than a good fire sale. Except maybe lambos.

As Wall Street analysts scramble to explain the move, one thing''s clear: in crypto, the only certainty is volatility. And the occasional rug pull, of course.

Key crypto assets have recently stumbled in terms of price irrespective of the market-favoring developments. The exclusive market data points out that, despite slight inflation in the U.S. market and the exclusive trade deal between China and the U.S., crypto market has incurred a decline. Specifically, Bitcoin ($BTC), Dogecoin ($DOGE), and Ethereum ($ETH) have recorded 1.18%, 2.71%, and 1.53% dips.

Bitcoin, Dogecoin, and Ethereum Drop by 1.18%, $2.71%, and 1.53%

In line with the new market data, Bitcoin ($BTC) has witnessed a 1.18% decrease in its price. As a result of this, the price of the flagship crypto coin now accounts for $108,619.39. Apart from that, Dogecoin ($DOGE) has recorded a 2.71% slump due to which its price has reached the $0.1928 mark. Additionally, ethereum ($ETH) has recorded a 1.53% decrease, pushing its price down to $2,772.61.

The wider live crypto data displayed the selloff, with more than $293M in diverse positions liquidated in 4 hours. Particularly, out of that, $198M was included in long bets, highlighting that several traders were excessively optimistic. In the meantime, the Open Interest in Bitcoin also plunged by 1.62% over 24 hours.

Binance-Based Traders Maintain Short Bitcoin Positions at Large

Along with that, most of the traders using Binance maintained their short positions on $BTC, when taking into account Long/Short ratio. Nonetheless, despite the dips, market sentiment sustained its inclination toward greed. Additionally, the wider market capitalization of the crypto sector dropped by 1.46% to touch $3.41T.

Hence, although the U.S. President Donald Trump has announced the groundbreaking trade agreement with China, the prominent crypto assets like Bitcoin, Dogecoin, and Ethereum are showing sideways in price movements. Keeping this in view, the market onlookers consider it crucial for Bitcoin ($BTC) to maintain its positive above $108,300 in order to preserve bullish momentum.