Crypto Bloodbath: Bitcoin and Altcoins Nosedive—Bull Market Over?
Crypto markets just got rocked. Bitcoin tumbles 12% overnight while Ethereum and Solana get crushed even harder. Retail investors panic-sell—institutional whales aren’t far behind.
Is this the big one? The correction everyone feared but secretly expected? Traders point to leveraged long liquidations hitting $800M in 24 hours. Ouch.
But here’s the kicker: every past bull run had at least one 30%+ drop before new ATHs. Even gold bugs admit that much. So is this a dead cat bounce or just Wall Street shaking out weak hands before the next leg up?
Meanwhile, traditional finance pundits—who missed Bitcoin at $3K—suddenly become technical analysts. How convenient.
Bitcoin and altcoins fell amid trade concerns
Bitcoin, altcoins, and the stock market retreated as trade concerns resumed. In a TruthSocial post, President Donald TRUMP said that trade talks with the European Union were going nowhere, and warned that the US will apply a 50% tariff on all goods from the region.
The statement meant an escalation at a time when market participants have been hoping for a deal between the two allies.
Europe has hinted that it will respond by hiking tariffs on US goods, including Boeing jets. In a statement this week, Ryanair’s CEO warned it WOULD consider cancelling a $33 billion order from Boeing and switching to Airbus if Boeing planes were hit with tariffs. Ryanair is Boeing’s biggest customer.
These trade concerns are coming a week after Moody’s sent shockwaves in the financial market by downgrading the US credit ratingIt also came as the House of Representatives voted for the Big Beautiful Billthat will increase US debt by over $3.8 trillion in a decade.
Is this the end of the crypto bull run?
This is not the end of the crypto market bull run for three main reasons. First, the 50% tariff on European goods is a negotiating tactic as Trump did with China. After pushing tariffs on Chinese goods to 145%, he pared them back to 30% earlier this month.
Second, Bitcoin has become a safe haven asset. Most recently, it outperformed the stock market after the Liberation Day tariffs. Spot Bitcoin ETFs have added over $8 billion in inflows since April.
Bitcoin’s appeal as a safe-haven asset is mostly because of its demand and supply metrics. Demand from institutions continues to rise as supply on exchanges and over-the-counter venues continues to fall. Also, bitcoin has proven itself as a worthy asset in the last 16 years as it jumped from near zero to $111,900 this week.
Third, these pullbacks in Bitcoin and altcoins are normal. Just recently, Bitcoin fell from $109,300 in January to $75,000 in April and then bounced back to a record high. In 2024, it peaked at $73,340 in March, fell to $49,390 in August, and rebounded to a record high in November.
