crypto Market Plunges as Major Tokens Drop Together
the global crypto market has taken a hit, falling below $4 trillion on October 14. The market lost about 4% of its value, with forced liquidations exceeding $370 million in just 24 hours.
Several factors are driving this downturn.Rising U.S.-China trade tensions and anticipation of Federal Reserve Chair Jerome Powell’s speech have created a risk-off sentiment. This has intensified selling pressure across major cryptocurrencies.
Bitcoin, the leading crypto, has dropped by over 3% in the past 24 hours. It’s now trading at $111,410, below its 30-day moving average. The relative Strength Index (RSI) for Bitcoin is around 70, suggesting short-term buying pressure but also the possibility of further declines.
Ethereum, another major token, has fallen by 3.32%, stabilizing around $3,970. Its RSI is at 61, indicating moderate bullish momentum after a bearish period.
The crypto greed and fear index has dropped substantially, reflecting investor anxiety. It’s now at 39, well within the fear zone.
What’s causing this crash? Macro and geopolitical factors are to blame. China’s response to U.S. trade pressure, including sanctions and export controls, has escalated tensions. This could lead to a potential trade war.
The market is also recovering from a $19 billion liquidation event over the weekend. Traders are hedging against possible hawkish remarks from Powell, which could delay rate cuts or tighten liquidity.
Whales are shorting altcoins like DOGE, PEPE, XRP, and ASTER, further contributing to the market’s decline.
