Why Can’t Bitcoin, Ethereum, Dogecoin, and Shiba Inu Prices Bounce Back ?
Crypto markets are facing renewed pressure as geopolitical concerns drive down prices of Bitcoin, Ethereum, Dogecoin, and Shiba Inu. This decline represents a significant blow for investors but could also present an opportunity worth seizing.
This widespread decline is primarily due to new concerns about a possible trade war.
Indeed, growing trade tensions, fueled by Trump’s tariff threats, have shaken global markets. With the August 1st deadline for a trade agreement approaching, uncertainty looms over investors, who are becoming increasingly cautious.
Bitcoin’s Fall Drags Down Other Cryptos
The main driver of this decline is Bitcoin’s recent drop, which has once again pulled Ethereum, Dogecoin, and Shiba Inu down in its wake. These altcoins typically follow Bitcoin’s fluctuations, being strongly correlated to the number one cryptocurrency.
Data from Coinglass shows that Bitcoin experienced more than $562 million in liquidations within 24 hours, as it trades around $108,000. This volatility has contributed to weakening the entire crypto market.
Cautious Investors Amid Uncertainty
Trump’s announcement of a proposed 10% tax on countries supporting BRICS, along with speculation about a possible economic decoupling, has also sown doubt among investors. This economic instability is affecting altcoin holders, particularly fans of Shiba Inu and Dogecoin.
Additionally, significant movements from Bitcoin’s long-term holders are fueling speculation about a potential market slowdown. Faced with this volatility, many traders prefer to remain cautious and wait for better visibility before taking positions.
Despite this challenging environment, several market analysts remain optimistic about the future of Bitcoin, Ethereum, Dogecoin, and Shiba Inu. Some experts indeed identify bullish trends, with price forecasts ranging from $117,000 to $170,000 for Bitcoin.
They point out that key indicators, such as the MVRV (Market Value to Realized Value) ratio or the Mayer Multiple, still remain at relatively low levels. The continuous increase in global liquidity also suggests that the bull market is not over.
As analyst Axel indicates, Bitcoin is undervalued and is experiencing compression of its Bollinger Bands. During previous similar phases, Bitcoin subsequently experienced significant expansion. Bitcoin could therefore be preparing for a strong movement.
Although the current situation may seem concerning, many specialists consider this decline as a long-term buying opportunity. It is therefore essential for investors to stay informed and conduct their own analysis to make enlightened decisions in this volatile market.
