The recent crypto market crash has sent shockwaves throughout the industry, with Bitcoin’s price plummeting by 5.2% to a low of $100,345. The overnight decline was attributed to a combination of factors, including the liquidation of leveraged trades, geopolitical tensions, and the ongoing feud between Elon Musk and Donald Trump.
One of the main catalysts for the market downturn was Trump’s signing of a new executive order, which increased tariffs on steel and aluminum by 50%. This move has added volatility to major financial markets and has had a ripple effect on the sentiment surrounding Bitcoin. Additionally, tensions between the US and China have escalated once again, further fueling market uncertainty and delaying technological advancements.
The bearish sentiment in the market led to the liquidation of over 215,000 traders in the past 24 hours, totaling nearly $1 billion in liquidations. Notably, a well-known whale in the crypto space, James Wynn, had long positions worth $16.14 million liquidated, forcing him to close all his positions.
The feud between Trump and Musk has also played a role in the market downturn, as both individuals are influential figures in the crypto space. The ongoing dispute between them, particularly regarding EV subsidies and national debt, has added to the bearish pressure on the market.
Despite the recent crash, there are signs of optimism in the market. Bitcoin’s price has rebounded by 3% to $103,976, and trade talks between the US and China are set to restart, offering hope for a resolution to the ongoing tensions. This has helped support Bitcoin’s price above the previous month’s support zone.
Looking ahead, market analysts suggest that Bitcoin’s price could see further volatility in the coming days. If market conditions deteriorate, the price could drop as low as $92,917 by the end of June. However, if positive news and market sentiment prevail, the price could target $130,000 by the end of the month.
Overall, while the recent market crash has caused concern among investors, there are indications that the bull run in BTC may not be over just yet. As always, it is essential for investors to stay informed and monitor market developments closely to make informed decisions.