Bitcoin is struggling to surpass the $100,000 threshold, facing intense selling pressure. In the last hour, the leading cryptocurrency fluctuated between $95,850 and $97,729, with a total market capitalization of $1.917 trillion. According to 10x Research, the crypto market is undergoing a challenging phase, with short-term risks pointing to further potential declines.
Why Is Bitcoin Dropping? Key Factors Behind the Decline
The recent weakness in Bitcoin price stems from global economic and political uncertainties. Analysts at 10x Research highlight that since early February, Bitcoin has been showing technical weakness, particularly with the formation of a “Diamond Top” pattern, which often precedes sharp corrections.
Initially aiming for $105,500, Bitcoin’s trajectory changed as market conditions shifted. Uncertainty grew following U.S. President Donald Trump’s announcement of new tariffs, causing investor sentiment to decline and reducing risk appetite. Additionally, the Federal Reserve’s strict monetary policy has heightened concerns, leading many investors to steer clear of riskier assets.
One of the major reasons behind Bitcoin’s struggle is the decline in market liquidity. Investors are cautiously monitoring interest rate decisions from the Federal Reserve and other central banks while hesitating to make new purchases. This caution is making it harder for Bitcoin to breach the $100,000 mark, increasing the probability of further losses.
Why Are Ethereum and Other Altcoins Crashing?
The Ethereum (ETH) price plummeted to $2,742, exposing the market’s fragility. Recent volatile price movements have forced Ethereum investors to unwind positions in the options market, triggering gamma hedging and liquidations in futures contracts, leading to severe price swings.
Moreover, Bitcoin’s dominance continues to rise, sparking concerns among altcoin investors. The total altcoin market cap fell from $1.46 trillion at the end of January to $1 trillion, wiping out approximately $460 billion in value. This decline has severely impacted multiple altcoin projects.
Adding to market uncertainty, the Trump administration’s proposed regulations on stablecoins have shaken investor confidence. Additionally, Bitcoin reserve plans are not a priority in Trump’s first 100-day strategy, further discouraging institutional interest. These factors have led to a rise in selling pressure across the crypto market.
As Bitcoin’s technical indicators continue to weaken, analysts warn that short-term downside risks remain elevated. Stay updated with the latest crypto market trends on Dey There.
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