The cryptocurrency market has been facing significant challenges in recent weeks, with Bitcoin (BTC) and Ethereum (ETH) leading the way. The market has lost over $1.3 trillion in valuation since Donald Trump took office for his second term as U.S. President. The political environment, including ongoing tariff trade wars, has contributed to heightened selling pressure and mixed fundamentals in the crypto market.
Despite the Trump administration’s announcement of a strategic Bitcoin and crypto reserve, institutional investors have significantly reduced their appetite for crypto assets. U.S. spot BTC ETFs have lost over $4.3 billion in the past two months, reflecting the changing market dynamics.
Bitcoin’s price has dropped more than 14% in the past week, retesting a crucial support level around $78k. The two-hour timeframe shows a potential bearish continuation pattern, with a target of $73.7k. Arthur Hayes, co-founder of BitMEX, predicts that Bitcoin’s price will continue in a bearish sentiment until major global central banks implement quantitative easing to stimulate economic growth.
On the other hand, Ethereum has been leading the altcoin industry in bearish sentiment, closing below a crucial support range between $2.1k and $2.2k. Sellers have the upper hand over buyers, with Ether’s price retesting the rising trendline on a weekly timeframe. A consistent close below $1,760 could trigger a heavy selloff in the coming weeks for Ethereum.
Ripple Labs’ XRP price has been forming a potential reversal pattern, with a head and shoulders formation and a bearish divergence on the weekly Relative Strength Index. The XRP price is retesting a crucial support level around $2, with a possible selloff towards $1.5 if buyers fail to defend the support level.
In conclusion, the cryptocurrency market is facing significant challenges due to political and economic factors. Investors should stay informed with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more to navigate these turbulent times.