Crypto Market Dip Today: Key Reasons Behind Bitcoin and Altcoin Declines

Are you wondering ? The total crypto market has lost billions in value over the last day. Bitcoin and other coins are sliding lower. Let’s break down what is happening and why.

Current State of the Crypto Market

The total crypto market cap sits near $3.09 trillion. It dropped by $45 billion in just 24 hours. This broad sell-off shows fear among investors. Bitcoin trades around $92,400, down from $97,000 last week. Altcoins like Story (IP) have fallen even more, down 13% to $2.39.

Selling pressure is strong. The market looks weak on charts. It may test $3.05 trillion soon if things do not improve. Risk is high right now.

Main Reason: US-EU Trade War Fears

The big trigger is tension between the US and EU. US President Trump announced a 10% tariff on goods from eight EU countries. This starts February 1 and could rise to 25% by June. It links to a dispute over Greenland.

The EU threatens to hit back with up to $100 billion in tariffs. This news sparks fears of a trade war. Global markets hate uncertainty. Investors pull money from risky assets like crypto. This risk aversion hurts liquidity and capital flows in crypto.

If tensions grow, the market cap could drop to $3.00 trillion. Macro events like this often lead to deeper sell-offs.

Bitcoin Price Analysis

Bitcoin led the decline. It failed to hold gains and now faces key support at $91,298. It trades above its 50-day moving average and an uptrend line. This offers some hope.

• If support holds: BTC could rebound to $93,471 soon.
• If it breaks: Next stop is $90,000, which might spark more panic.

Volatility is high. Watch these levels closely for short-term moves.

Altcoins Under Pressure

Altcoins are hit harder. Take Story (IP) as an example. It dropped 13% in a day. Technicals show a downtrend with Parabolic SAR above price candles.

• Key supports: $2.33 and $2.16.
• If lost: Could fall below $2.00.
• Recovery signs: Break above $2.50 could lead to $2.90.

Broad altcoin selling follows Bitcoin. Weak hands are exiting fast.

Bright Spots Amid the Dip

Not all news is bad. Positive developments could aid recovery.

Bermuda aims to be the first fully on-chain nation. It will use digital assets for payments and economy. Circle and Coinbase provide the tech. This boosts blockchain adoption.

The New York Stock Exchange plans tokenized securities and 24/7 trading. This could change stock markets and bring more liquidity to crypto-linked assets.

These steps show real-world use growing, even in tough times.

What to Expect Next

Recovery hinges on investor behavior. If holders stay put, selling may ease. The $3.09 trillion level could hold.

Worse case: Trade war escalates, pushing markets lower. Best case: Tensions cool, and positive news drives inflows.

Stay informed on geopolitics and tech levels. Diversify and avoid panic sells. Long-term, crypto fundamentals remain strong.

Final Thoughts on the

The stems from trade fears and selling pressure. Bitcoin and altcoins test supports, but positives like Bermuda and NYSE plans offer hope. Watch key levels and news for the next move. Crypto is volatile, but opportunities arise in dips.

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Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.