The cryptocurrency market is facing another sharp downturn, with Bitcoin, XRP, Solana, and Dogecoin witnessing significant price declines. This latest crash comes amid mounting economic uncertainty, investor sell-offs, and shifting market sentiment.
Why Are Crypto Prices Dropping?
Data from CoinMarketCap indicates a widespread market decline, with major cryptocurrencies losing value. The downturn follows escalating global economic tensions, including ongoing tariff disputes between the U.S. and China. Although the U.S., Mexico, and Canada recently agreed to a temporary pause on tariffs, concerns remain over existing trade restrictions and China’s retaliatory measures, including an antitrust investigation into Google.
These economic pressures have fueled a wave of sell-offs across the crypto sector. Crypto analyst Ali Martinez noted that $2.73 billion in Bitcoin profits were realized yesterday, leading to increased selling pressure that further deepened the market downturn.
With Bitcoin’s influence over altcoins, XRP, Solana, and Dogecoin also experienced price drops. As a result, the market has seen over $235 million in liquidations, with long positions taking the biggest hit—accounting for $173 million of total liquidations.
Market at a Critical Juncture
Crypto analyst Justin Bennett highlighted in an X (formerly Twitter) post that the market is at a pivotal moment. He pointed out that Tether’s dominance has reached its highest daily, 3-day, and 5-day close since early November, with the 4.4% level acting as a key support zone.
While Bennett refrained from making definitive predictions, he noted that if Tether’s dominance falls back below 4.37%, he could turn short-term bullish on Bitcoin. Until then, he advised caution, suggesting the market remains fragile.
Is the Bull Run Still Intact?
Despite the ongoing correction, some industry experts believe the crypto bull run is far from over. Cardano founder Charles Hoskinson remains optimistic, stating that 2025 will be crypto’s year, citing market resilience even after a $2 billion liquidation earlier this week.
From a technical standpoint, analysts continue to foresee new highs for Bitcoin and altcoins. Crypto analyst Dark Defender predicts that XRP could surge to $8, while Ali Martinez maintains that Dogecoin could still hit $10 if it holds above $0.19. Additionally, asset manager VanEck forecasts Solana reaching $250 before the end of the year.
What’s Next?
While the short-term outlook remains uncertain, analysts suggest that key support and resistance levels will determine the next move for Bitcoin and the broader crypto market. If major cryptocurrencies can regain bullish momentum, the correction may be temporary. However, sustained economic pressures and continued sell-offs could lead to further declines in the near term.
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