The cryptocurrency market has experienced a recent decline, with large cap crypto like Bitcoin, Ethereum, Dogecoin, and Shiba Inu all experiencing losses. This decline is mostly due to new worries about a potential trade war, which have shaken investor confidence.
Why Are these Crypto Prices Down Today?
A key driver behind this collective slump is Bitcoin’s recent dip, which has once again dragged Ethereum, Dogecoin, and Shiba Inu lower due to their strong price correlation with the flagship cryptocurrency. Over the past 24 hours alone, Dogecoin has declined by 4%, with Ethereum and Shiba Inu posting nearly similar losses.
Bitcoin is currently in a period of stability, trading within a small price range as its fluctuations decrease. Data from Coinglass shows that Bitcoin has experienced over $562 million in liquidations as it remains around the $108,000 level.
Recently, China warned the Trump administration about increased tariff threats, which have unsettled global markets. The deadline for a trade agreement on August 12 adds further uncertainty and crypto assets are among the first to feel the impact of rising economic pressures.
In addition, Trump’s proposal of a 10% tariff on countries siding with BRICS, alongside mounting speculation about economic decoupling, has also unsettled investors. He also announced a 25% tariff on imports from Japan and South Korea, citing what he described as unfair trade practices that have contributed to significant U.S. trade deficits with both nations.
Furthermore, Crypto analyst Ali Martinez reveals that more long-term Bitcoin holders are beginning to cash in on recent gains, fueling speculation of a potential market cooldown. While Bitcoin Treasury activity shows bold accumulation moves, many investors are locking in profits amid the current rally.
With market volatility at a low, traders are hesitant to jump in, fearing they may lose money if prices continue to fall. This decline is also worrying altcoin holders, including fans of Shiba Inu and Dogecoin, who usually follow Bitcoin’s trends closely.
Are Crypto Investors Selling?
Despite the current slump, several market analysts remain bullish on Bitcoin, Ethereum, Dogecoin, and Shiba Inu. Technical analyst Mr. Wall Street points to a descending broadening wedge forming between the $90,000 and $110,000 range on Bitcoin, a pattern historically associated with accumulation and eventual explosive upside.
An analyst pointed out that key metrics like MVRV (Market Value to Realized Value) are still below their highest levels. The ongoing increase in global liquidity suggests that the bull market isn’t over yet. They believe that prices could rise above $117,000 and potentially reach between $140,000 and $170,000.
The analyst also addressed recent fears about large Bitcoin wallet movements. They explained that these large transfers were just internal adjustments, not sales. They noted that when retail investors panic and sell, it often signals the final shakeout before a price increase.
Coingape Staff
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.
✓ Share: