- Crypto market crash driven by global uncertainty: Bitcoin, XRP, Solana, and Dogecoin have experienced significant price declines due to ongoing trade tensions, including US-China tariffs and market fear fueled by economic instability.
- Analysts highlight critical market levels: Crypto analyst Justin Bennett pointed to Tether’s rising dominance as a key indicator of bearish sentiment, while cautioning that a drop below 4.37% could trigger short-term bullish momentum for Bitcoin.
- Bull run hopes remain: Despite the downturn, analysts and industry leaders like Charles Hoskinson are optimistic, predicting new highs for assets like XRP ($8), Dogecoin ($10), and Solana ($250) in the coming months, especially with 2025 seen as a potential breakout year for crypto.
The crypto market is seeing yet another major crash. Prices of Bitcoin ($BTC), XRP, Solana (SOL), and Dogecoin (DOGE) have dropped significantly, rattling both investors and traders. This latest downturn comes during a period of global economic uncertainty and bearish market sentiment, fueled by ongoing geopolitical tensions and trade tariffs. Let’s dive into what’s happening.
Why Is the Market Crashing?
CoinMarketCap data shows that Bitcoin and major altcoins are all declining today. A key driver? The lingering impact of tariffs. Despite a temporary pause on certain tariffs between the US, Mexico, and Canada, the trade war between the US and China is still in full swing. China retaliated by imposing tariffs of its own and has also launched an antitrust investigation into Google. All this is stirring up market anxiety and driving sell-offs in crypto.
Adding to the pressure, crypto analyst Ali Martinez noted that $2.73 billion in Bitcoin profits were realized yesterday. This large-scale profit-taking has increased selling pressure, accelerating the market downturn.
Altcoins haven’t escaped either. With Bitcoin’s influence over the entire market, assets like XRP, Solana, and Dogecoin have followed in its footsteps, pushing total liquidations to over $235 million. Long positions were hit hardest, with $173 million liquidated in a single day.
Market at Pivotal Levels: What Analysts Are Saying
Justin Bennett, a well-known crypto analyst, highlighted in an X post that the market is at a critical juncture. He pointed out that Tether’s dominance (USDT.D) reached its highest close across multiple timeframes since early November. The 4.4% dominance level is currently acting as support.
However, Bennett remains cautious. He warned that if Tether’s dominance holds above this level, it could keep market sentiment bearish. But there’s a twist—if Tether’s dominance drops below 4.37%, Bennett said he would turn short-term bullish on Bitcoin and the broader crypto market. Until that happens, though, he advises traders to tread carefully.
Is the Bull Run Over? Maybe Not.
While the market is clearly struggling, some industry leaders believe the bull run isn’t over. Charles Hoskinson, founder of Cardano, remains optimistic, claiming that 2025 will be a breakout year for crypto. Hoskinson pointed to the market’s resilience after enduring a massive $2 billion liquidation this week as a sign of strength.
From a technical standpoint, analysts are still hopeful for new highs.
- Dark Defender predicts that XRP could rally to $8.
- Ali Martinez believes Dogecoin could hit $10 this cycle if it stays above $0.19.
- Asset manager VanEck has projected Solana could reach $250 by the end of the year.
Final Thoughts: What’s Next for Crypto?
The crypto market is in a critical phase, balancing between fear-driven sell-offs and the hope of another rally. With market sentiment deeply affected by both economic uncertainty and technical indicators, traders are watching key levels closely. If Bitcoin and major altcoins can regain momentum, we may see a recovery sooner than expected. Until then, caution remains the word of the day.
