Crypto Market Dip: Bitcoin, Ethereum Prices Fall
The cryptocurrency market experienced a recent downturn, impacting major cryptocurrencies like Bitcoin, Ethereum, Dogecoin, and Shiba Inu. This decline is primarily attributed to renewed concerns about a potential trade war, impacting investor confidence.
Why Are Crypto Prices Falling?
Bitcoin's recent dip significantly influenced this market correction. Ethereum, Dogecoin, and Shiba Inu, strongly correlated with Bitcoin, followed suit. In the last 24 hours, Dogecoin fell by 4%, with Ethereum and Shiba Inu experiencing similar losses.
Bitcoin is currently trading within a narrow price range, showing reduced volatility. Data from Coinglass reveals over $562 million in Bitcoin liquidations, while its price remains near $108,000.
China's recent warning to the Trump administration regarding increased tariffs contributed to global market uncertainty. The August 12th trade agreement deadline further exacerbates this uncertainty, impacting crypto assets significantly.
Further unsettling investors is Trump's proposed 10% tariff on BRICS nations and speculation about economic decoupling. His announcement of a 25% tariff on imports from Japan and South Korea, citing unfair trade practices, added to market anxieties.
Crypto analyst Ali Martinez notes that more long-term Bitcoin holders are realizing profits, potentially indicating a market cooldown. While Bitcoin Treasury activity shows significant accumulation, many investors are securing profits during the current rally.
With low market volatility, traders remain cautious, fearing further price drops. This downturn also concerns altcoin holders, particularly Shiba Inu and Dogecoin investors who typically follow Bitcoin's trends.
Are Crypto Investors Selling?
Despite the current slump, some analysts remain optimistic about Bitcoin, Ethereum, Dogecoin, and Shiba Inu. Technical analyst Mr. Wall Street highlights a descending broadening wedge between $90,000 and $110,000 on the Bitcoin chart, a pattern often associated with accumulation and subsequent price surges.
Another analyst points out that key metrics like MVRV (Market Value to Realized Value) remain below their peak levels. The ongoing increase in global liquidity suggests the bull market may not be over. Price predictions suggest Bitcoin could surpass $117,000, potentially reaching $140,000-$170,000.
This analyst also addressed concerns about large Bitcoin wallet movements, explaining that these were internal adjustments, not sell-offs. They suggest that retail investor panic selling often signals a final shakeout before a price increase.
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