The cryptocurrency market, led by Bitcoin and Ethereum, has lost a significant portion of its valuation amid political and economic shifts. Trade wars influenced market dynamics, leading to decreased institutional investor interest.
Cryptocurrency Market Overview
Since Donald Trump took office for his second term, the crypto market has shed $1.3 trillion. The anticipated measures for a strategic Bitcoin reserve did not stabilize the market due to ongoing tariff wars, increasing market pressure. Institutional investors reduced their activity, notably in BTC ETFs, which have lost over $4.3 billion.
Bitcoin and Ethereum Price Predictions
Bitcoin, having dropped 14% last week, is retesting key support around the $78k level. A potential bearish continuation pattern may lead to $73.7k. According to Arthur Hayes, bearish sentiment is likely to persist until major central banks resume quantitative easing.
XRP Situation Analysis
XRP has been forming a reversal pattern since December 2024, characterized by a bearish divergence. It is testing support at $2, coinciding with the H&S neckline. Failure to defend this level may result in a drop to $1.5.
The crypto market continues to be influenced by external economic and political factors. It is important to monitor the central banks' future actions and their effect on market stabilization.
