Friday saw a fall in cryptocurrency markets as investor confidence was shaken by further tariff-related worries. Bitcoin fell by more than 2%, currently trading around $103,700. Significant losses were also experienced by major smart contract platforms, with Solana falling 6.3%, Sui falling 7.8%, and Avalanche losing 7.3%.
The downturn extended to crypto-related stocks as well. Bitdeer (BTDR) tumbled 8.3% following its recent rally, while MicroStrategy (MSTR) slipped 2.7% and Coinbase (COIN) registered a 1.3% decline.
Tensions between the U.S. and China have resurfaced, ending a brief period of calm earlier this month. President Trump accused China of breaching the existing tariff agreement, while Treasury Secretary Scott Bessent stated during an interview on Fox News that trade negotiations had “stalled.”
In a sharp rebuttal, Chinese officials urged the United States to “correct its wrongful actions and stop discriminatory practices,” as reported by the BBC. Previously, the temporary easing of tensions had fueled a surge in risk-on assets like Bitcoin, but the latest developments now threaten to reverse those gains and dampen market optimism.
Bitcoin has declined by 6% over the last week, with current market behavior showing mixed signals. Although whale activity suggests a possible resurgence, key technical indicators continue to raise concerns. A potential death cross is forming, and if Bitcoin breaks below the critical $104,584 support level, it could extend its fall toward $100,694. To shift momentum back in their favor, bulls must reclaim the $106,726 level to avoid steeper losses.
Meanwhile, memecoins have faced a substantial correction, losing over $10 billion in combined market value in just seven days—dropping from $74 billion to $64 billion, the lowest since May 9. Additionally, the expiration of more than $11.4 billion worth of Bitcoin and Ethereum options has intensified short-term volatility, further shaping the market’s direction.
The Crypto Fear and Greed Index has dipped from 74 to 69, marking its lowest reading in three weeks and reflecting growing market caution. More than 217,000 traders were recently liquidated, with total crypto market liquidations surpassing $800 million. In just the past 24 hours alone, liquidations have amounted to over $716 million.
In the derivatives market, Bitcoin futures open interest saw a steep decline of $3.7 billion, coinciding with BTC’s price falling from $108,000 to $104,500. Analysts view this retracement as a market reset, flushing out excessive leverage and dialing down speculative hype.
Although a dip toward $100,000 for Bitcoin seems possible, historical patterns suggest any breach below that threshold may be temporary. According to CryptoQuant’s Net Realized Profit/Loss (NRPL) data, current profit-taking activity remains mild—significantly lower than the selling behavior seen at 2024 market tops—suggesting the uptrend is not yet exhausted.
Should Bitcoin break below $100,000, the $96,000 level is expected to act as a critical support zone, potentially limiting further downside. Noted trader Altcoin Sherpa highlights a strong demand area between $102K and $104.5K, predicting a likely bounce that could drive Bitcoin back above $107,000 in the near term.
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