Crypto Bloodbath: Major Digital Assets Nosedive in Market Shakeup

Bitcoin leads the plunge as top cryptocurrencies shed double-digit percentages overnight. Ethereum, Solana, and BNB all caught in the downdraft—just as Wall Street ’experts’ were pushing leveraged long positions.

Market veterans shrug while retail traders scramble. Another day, another volatility feast for the crypto markets. Remember: corrections burn weak hands, but they’re also where fortunes get made.

Bonus jab: Meanwhile, traditional finance continues charging 2% management fees for 1% returns.

$104,754, Ethereum (ETH)$2,543, Dogecoin$0.193232 (DOGE), and XRP have experienced significant value losses. BTC dropped to as low as $103,000 today.

ContentsReasons Behind the crypto market DeclineStatements from Experts and Authorities

Reasons Behind the Crypto Market Decline

The decline in the crypto markets is attributed to two main factors. Firstly, the accusation by Donald Trump on Truth Social, alleging that China violated its trade agreement with the US, has stirred tensions. Secondly, the growing anticipation that the US Federal Reserve will not lower interest rates has influenced the market sentiments negatively.

Experts believe that akin to traditional financial markets, the cryptocurrency market is also swiftly influenced by global economic developments. Such international events significantly reduce investors’ risk appetite, causing turmoil in the markets.

Within 24 hours, the total value loss in the crypto market was reported to be $186 billion. According to CoinMarketCap data, the total market value dropped by 3.15% to $3.35 trillion. Among the major cryptocurrencies, Dogecoin experienced the most substantial loss within the top 10.

Statements from Experts and Authorities

Experts warn that expectations of changes in interest rates could lead to substantial fluctuations in the crypto markets. The interest rate policy of the US Federal Reserve is a direct influencing factor on crypto investments. Due to tariff uncertainties, the Fed avoids interest rate cuts, further affecting the market stability.

As we have cautioned over the past few days, the inability to reclaim the breached $106,800 level has made the risk of a drop to $102,000 more apparent. Today, the price has nearly reached the target point. If there are no declarations by Monday of continued dialogue between the China-US duo, sales might accelerate further.

The recent steep decline in the global cryptocurrency market is primarily attributed to international trade tensions and anticipation of central bank interest rate decisions. Investors might consider diversifying their portfolios and strengthening risk management against such fluctuations. It is also essential to remember that cryptocurrencies have high volatility and promptly price in current developments. Broad price declines, when combined with investors’ emotional reactions, can lead to short-term but impactful changes in the markets.

You can follow our news on Telegram, Facebook, Twitter & Coinmarketcap Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.