Bitcoin and the crypto currency market in general have recently faced a major sales pressure. The total market value of all crypto assets decreased by 4 %and fell below 3.6 trillion dollars. Bitcoins and Altcoins are traded in the red zone, while Virtuals Protocol, Hyperliquid, Curve, Neo and Jasmycoin were among the most depreciating.

Causes of decline in Bitcoin and Altcoins

The main reason for the collapse in the market was the tendency to escape the risk in global financial markets. US President Donald Trump announced that it would apply 10 %of imports from China and 25 %additional tax on goods from Mexico and Canada.

This new trade war increased the risk of a serious crisis in the global economy. US markets were also influenced by these uncertainties. Dow Jones, S&P 500 and NASDAQ 100 indices decreased by about 1 %, while inflation in the US has reached the highest level of the last eight months. This weakened the Fed’s likelihood of making interest rate reduction in the near future.

Effects on Crypto Market

In economic uncertainty and high inflation, investors tend to avoid risky assets. For this reason, the crypto money market also faced a harsh wave of sales. If the Fed maintains aggressive monetary policy, Bitcoin and Altcoins may experience more depreciation.

In addition, with the impact of import taxes, large companies in the United States are expected to increase prices. For example, General Motors and Ford’s vehicles imported from Mexico are expected to increase a 25 %price. Likewise, many products such as televisions and smartphones are expected to increase costs.

Technical indicators in Bitcoin indicate a fall

The Bitcoin price has created a “double-top” formation, a critical technical formation. After making a peak of 108,445 dollars, BTC is expected to decline to $ 88.940, the neckline of this formation.

In addition, indicators such as percentage price oscillator (PPO) and the relative power index (RSI) are also tending to decline. PPO is an indicator based on MACD and gives significant signals about the direction of the market. Negative movements in these indicators indicate that Bitcoin may lose more value.

Sales pressure increases in Altcoins

The possible decline scenario in Bitcoin creates a major sales pressure on Altcoins. If the BTC loses its 50 -day moving average support, it is possible to deepen the losses in the market.

While investors closely follow the developments in the crypto market, it is of great importance how macroeconomic uncertainties will affect Bitcoin and Altcoin prices. The Fed’s interest policy and the direction of global trade wars will be the most critical factors that determine the future movements of the market.