Woke up to a sea of red? Well, you aren’t alone.
The entire crypto market just wiped out $110 billion in value. Plus, the total market cap crashed down to $2.18 trillion today.
So why is everything crashing at once? Let’s break down the macro factors and technical damage hitting your portfolio right now.
Macroeconomic Uncertainty Just Killed the Vibe
First, let’s look at the broader financial world. US President Donald Trump just announced a massive 15% increase in global tariffs. Consequently, investors panicked across all markets.
Indeed, risk assets always suffer when macroeconomic uncertainty spikes. So, capital quickly rotated out of crypto and into safer traditional investments.
As a result, the total crypto market cap lost its critical $2.22 trillion support level. If this bearish momentum continues, we could see a further slide down to the $2.13 trillion zone.
Bitcoin Liquidation Pressure Triggers a Brutal Drop
Naturally, Bitcoin took a massive hit today. The leading cryptocurrency fell right through a symmetrical triangle pattern on the charts. Thus, market volatility is rising incredibly fast.
Currently, Bitcoin sits dangerously below the crucial $64,142 mark. Furthermore, technical projections warn of a potential 14% decline. If massive liquidation pressure continues, Bitcoin could easily crash below $60,000.
Things get much worse if that $60,000 floor breaks. Then, the next major downside target sits way down at $55,341. However, if buyers step in and push the price back above $64,142, Bitcoin might recover toward $67,394.
Technical Indicators Warn of a Bitcoin Cash Death Cross
Obviously, altcoins usually bleed harder when Bitcoin falls. For example, Bitcoin Cash (BCH) crashed a painful 15% in just 24 hours. Now, it clings to life right above the $480 support level.
Meanwhile, technical indicators look incredibly grim. Specifically, BCH is rapidly approaching a Death Cross formation. This happens when the 50-day EMA drops below the 200-day EMA on the charts.
Clearly, this bearish crossover signals deep trend weakness. If the current $480 support breaks, Bitcoin Cash will likely slide to $458. Yet, a strong market bounce could push it back up to $516.
Protocol Hacks and Depegs Add Fuel to the Fire
But the charts aren’t the only disaster today. Behind the scenes, several crypto projects faced serious operational nightmares.
Sadly, Step Finance and SolanaFloor are shutting down immediately. They failed to recover from a massive January treasury hack. Fortunately, they still plan a buyback process for affected users.
Also, the World Liberty Financial protocol suffered a major hack that spread false information. Plus, the USD1 stablecoin briefly depegged to $0.994 before finally recovering. Together, these events completely shattered short-term investor confidence.
Ultimately, today’s crash proves how fast market sentiment changes. When global tariffs shake traditional finance, crypto always takes a massive hit.
Therefore, I recommend staying incredibly patient right now. Catching falling knives usually ruins your portfolio. Instead, wait for Bitcoin to reclaim solid support levels before deploying fresh capital.
Remember to keep your emotions in check. Just watch the charts, monitor the macroeconomic news, and protect your downside.