The cryptocurrency market is facing significant declines, raising concerns among investors worldwide. The causes of this crash are multifaceted and include political instability and actions by major players.
Tensions Over Fed Pressure
Following Donald Trump's return as U.S. President, he has pressured Fed Chair Jerome Powell to cut interest rates down to 1%. However, at the recent FOMC meeting on July 30, Powell kept rates steady at 4.25%–4.50%, creating confusion and fear in financial markets. Uncertainty around Fed rate cuts shakes investor confidence, especially in crypto.
Trump Tariffs Fuel Global Fears
Recent news concerning Trump's tariffs is also causing panic. His new policies are imposing steep tariffs: 25% on India, 35% on Canada, 15% on South Korea, and 30% on Europe. Such actions could trigger trade wars and slow down global economic growth, prompting investors to pull out of risk assets like cryptocurrencies.
Panic Selling by Whales and Its Consequences
Another reason for the crypto market crash prediction is the massive sell-offs by large players. According to Lookonchain, a whale known as 0x3c9E sent over $93 million in ETH to major exchanges like Binance and Kraken within just 48 hours. Another trader increased their short position by 20,000 ETH, indicating a loss of confidence in the market. These significant sell-offs could trigger a chain reaction of further selling.
The market remains unstable due to Trump's aggressive tariffs, pressure on the Fed, and actions by major players. The question of whether the market can recover remains open.
