Recent fluctuations in the cryptocurrency market have led to capitalization decline and substantial asset liquidations. This trend is linked to economic indicators and changes in market sentiment.
Market Capitalization Decline
The overall cryptocurrency market capitalization has fallen below $3.65 trillion, with Bitcoin dipping below the $115K mark. This decline triggered $828 million in liquidations, of which $753 million came from long positions.
Impact of Economic Data on Cryptocurrencies
Weak U.S. jobs data reported just 73K new hires, coupled with Trump's new tariff threats on Chinese goods, rattled market sentiment. Crypto-related equities also suffered: Coinbase dropped 8%, while major miners fell by up to 16%.
Prospects for Further Decline
Technical charts indicate potential for further declines. If Bitcoin fails to hold the $113,900 level, it could drop to $110K and even $108K. The total market cap may slide towards $3.58 trillion if buyers do not reclaim $3.73 trillion soon.
The current situation in the cryptocurrency market warrants attention. Key events, such as comments from the Federal Reserve and economic data, may be decisive for the market's future direction.
