The collapse of the Steam encryption market has gained overnight as investors adopted a risk feeling. Bitcoin price decreased to nearly $ 100,000, while the maximum market for all metal currencies decreased to more than $ 3.2 trillion. This article explains the main reasons for the collapse of the encryption market and whether the bull’s running is over.
Why the collapse of the encryption market occurs
There are at least three main reasons that make encrypted currencies in the strong bear market, including: Bitcoin withdrawal, political geography, seasonal, Trump and Eileon Musk.
Bitcoin price withdrawal
The first main reason behind the decline in the encryption market is that the price of bitcoin has decreased from the highest level from the year to the date of 111,900 dollars to 101,000 dollars. This decline occurred when investors booked profits after the strong gathering.
Bitcoin is the most important encrypted currency in the industry, and the movement of prices often affects other coins. When Bitcoin sneezes, the other altcoins affects a cold, and when it rises, others flourish.
Bitcoin always withdraws after reaching its highest level ever. For example, jumped to the highest level ever at $ 64,950 in 2021 and then fell to $ 24,490 in the next few months.
He jumped to the highest new level of $ 73,635 in March 2024 and then fell to $ 74,000 in August. History shows that it is always back after this happens.
Technically, the price of bitcoin decreased as the handle section is in the cup and processing style. This style includes horizontal support, round bottom, and handle.
Political geography
The collapse of the encryption market occurs due to political geography, which has fueled fluctuations. Donald Trump signed a new executive for long -distance walking and aluminum definitions to 50 %. These definitions hope will help increase local steel production.
Trump also complained of China and regretted that the country did not fulfill its reach in Switzerland. It has noticed that China still charges rare ground minerals.
Then China accused the United States of violating the agreement. Trump threatened to deport some Chinese students in American universities and prevent the semiconductor shipments.
Xi Jinping and Trump spoke on the phone on Thursday, but they failed to solve these ongoing issues. Instead, they agreed to continue speaking to resolving distinguished issues.
Therefore, the collapse of the encryption market occurs where investors expect more commercial problems in the coming months.
The seasonal contributes to the crash of encryption
Moreover, the collapse of the encryption market is accelerating due to seasonal, as June is often the worst month of this industry. This occurs due to the summer season when most of the big investors travel.
Bitcoin decreased by 7 % last June after gaining 12 % in the previous year. Before that, 37 % decreased in June 2022, 6 % in 2021, and 3.18 % in 2020.
Likewise, ETHEREUM decreased by 8.6 % in June last year after an increase of 3.2 % in the previous year. It decreased by 45 %, 15 % and 2.4 % in the previous three years.
The repercussions of Trump and Eileon Musk
The collapse of the encryption market also occurred due to the repercussions of Elon Musk and Trump, due to the beautiful big bill. Musk asked the politicians in Washington to vote against the bill because it ends EV and increases debt.
He even criticized Trump for his definitions, which he believed will lead to recession. More importantly, Trump’s insulation has supported.
This is likely to be the most expensive conflict ever, as the net net value decreased by $ 33 billion on Thursday with a decrease in Tesla shares. These procedures have an impact on the encryption market because Trump and the major defenders of this industry.
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