Cryptocurrency markets are reeling today as a “perfect storm” of geopolitical tensions and technological glitches wipes out hundreds of billions of dollars in market capitalization. Industry bellwether Bitcoin plummets towards crisis $90,000 The support level rises, dragging the broader altcoin market into a deep correction.
Investors who were once focused on the $120,000 breakout are now facing the cold snap of a sudden “crypto winter.” Changes in the global macro environment.
Crypto Crash: Market Snapshot
As of this morning, major assets are in deep red across the board.
Why cryptocurrencies crash: 3 main factors
1. Intensification of “Greenland” trade war
The main reason was Tensions across the Atlantic. President Donald Trump’s administration threatened Customs duties from 10% to 25% Eight European countries, including Germany, France and the United Kingdom, said the move was related to a diplomatic dispute over the United States’ push to secure Greenland.
The threat of a full-scale trade war with the EU has triggered a massive “risk-off” movement. Investors are fleeing speculative assets such as cryptocurrencies and seeking traditional, safe assets. While Bitcoin is falling, Gold prices rose to a new record of $4,670.
2. $860 million forced liquidation
The price decline was fueled by a massive “long squeeze.” An automatic sell order was triggered when Bitcoin fell below $95,000. Market data is $860 million in leveraged long positions All destroyed within the last 48 hours. this is, paradox exchangea pricing error briefly caused Bitcoin to be listed at $0, triggering a wave of “accidental” liquidations and forcing a rare blockchain rollback.
3. Regulatory gridlock and production costs
Confidence took a hit after the Senate delayed raising the bill. clear methoda bill aimed at providing a legal framework for digital assets. Additionally, JP Morgan analysts recently noted that Bitcoin production cost rose to approximately $94,000. With market prices below this “floor,” miners are facing further pressure, leading to fears of further sales to institutional investors.
Cryptofuture: What happens next?
The analyst is currently $88,000-$90,000 range. If Bitcoin cannot sustain this psychological bottom, the next major support level will be $85,000. However, some whales remain undaunted. MicroStrategy reportedly took advantage of the decline to acquire another company 22,305BTC This morning, it traded for $2.1 billion, bringing its total holdings to over 700,000 BTC.
