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The global cryptocurrency Market has seen a sharp retreat, shedding approximately $97 billion in the past 24 hours—a 3.65% drop that brings the total market capitalization down to $2.58 trillion, according to TradingView data.
Several catalysts are driving the downturn, with Wall Street’s sour sentiment spilling over into crypto. New U.S. restrictions on Nvidia’s chip exports to China have shaken markets, triggering a sell-off in tech stocks and dragging down correlated assets—including cryptocurrencies. The Nasdaq 100 fell over 2.3%, with chipmaker ASML plunging more than 7%, reinforcing risk-off behavior across global markets.
Adding fuel to the fire, reports emerged of China potentially offloading $16 billion in Bitcoin, further pressuring investor confidence. According to recent data, the Chinese government holds around 190,000 BTC, and rumors of large-scale liquidation echo past market reactions to similar state selloffs in the U.S. and Germany.
Meanwhile, the crypto futures market saw $245 million in liquidations, with Bitcoin (BTC) and Ethereum (ETH) accounting for the largest losses—$51.5M and $49.8M, respectively. The imbalance between $173.8M in long liquidations versus $71.5M in shorts signals investor overconfidence in a bullish reversal that never came.
Technically, the total crypto market cap failed to break above a key multimonth resistance near $2.6 trillion, hovering below its 50-day and 200-day EMAs, both bearish indicators. The Relative Strength Index (RSI) at 47 reflects fading buying pressure. Analysts warn that if these levels hold, a deeper slide toward $2.2 trillion could be next.
Also Read: Why Mantra’s OM Token Experienced a 90% Crash: A Look into the Market Forces at Play
Interestingly, as crypto struggles, gold surged to a record high of $3,317/oz, outperforming Bitcoin in 2025 with a 26.5% YTD gain, compared to BTC’s 11.5% loss—a clear sign that risk aversion is intensifying.
Until technicals reverse and macro pressures ease, the crypto market may remain on shaky ground.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
