Chill in the Crypto Market : Analysis and Perspectives
After a period of relative stability, the crypto market is currently experiencing a generalized decline. Major players like Bitcoin, Ethereum, Solana, and XRP all show substantial losses. But what triggered this sudden drop?
Public Spat between Musk and Trump Rocks the Market
An unexpected element seems to have contributed to this decline: a public feud between two influential personalities, Elon Musk and Donald Trump. The heated exchanges between these two figures have created tangible tension, disrupting both traditional and crypto markets.
Musk openly criticized Trump’s past controversies, even calling for his impeachment. In response, the former president retaliated with sharp remarks on the economy. While this drama might seem like just another media twist, it has certainly raised concerns among investors.
Bitcoin Drops, Altcoins Follow Suit
Currently, the global cryptocurrency market cap stands at 3.18 trillion dollars, reflecting a 3.42% decrease over the last 24 hours. The Fear and Greed Index, at 46, shows a neutral sentiment in the market, while the Altcoin Season Index is low at 23 out of 100.
Bitcoin is trading at $103,360, up 2.77% on the day. Ethereum has dropped to $2,386, losing nearly 7%, while Solana is priced at $147.39, after a drop of over 5%. XRP has slipped to $2.05, and Dogecoin has suffered one of the biggest impacts, plummeting by nearly 9% to $0.1670.
Overall, over $1 billion has been liquidated in the last 24 hours, reinforcing the downward pressure.
Encouraging Outlook Amidst the Decline ?
Despite this sharp decline, analysts believe this strong reaction could be short-lived. Tensions between Musk and Trump may soon ease, which could help stabilize prices. Bitcoin’s crucial support zone is between $100,700 and $98,000. If the market manages to hold above this range, it could enter a sideways phase before attempting a rebound.
As indicated by Cole Garner, a significant influx of buying was observed during yesterday’s panic, indicating that Bitcoin could move sideways in the coming days. However, from a technical standpoint, Bitcoin is and remains bearish in the medium term until the protected high at $108,800 is surpassed.
