The crypto market didn’t just dip recently — it imploded. With over $2 billion in liquidations, the shockwaves were felt across the entire industry.
What really triggered the crash?
Some have rushed to blame crypto itself, claiming the market was overheated or inherently flawed. But those assumptions couldn’t be further from the truth. This downturn was not a crypto failure. Instead, geopolitical chaos and the surging U.S. Dollar Index (DXY) played critical roles in the crash.
Here are the cliff notes of what happened:
- President Trump reignited a trade war, imposing a 25% tariff on Canada and Mexico, along with a 10% tariff on China.
- Canada retaliated immediately, while Mexico and China promised countermeasures.
- The U.S. escalated tensions further by threatening 100% tariffs on BRICS nations if they pursued a competing currency.
Weekend Sell-Off Chaos
The turmoil in traditional markets quickly spilled over into crypto. Rattled by Trump’s tariff announcements, crypto traders hit the panic button.
- Ethereum (ETH) experienced its worst intraday plunge since May 2021, dropping by 27% to around $2,300.
- Bitcoin (BTC) tumbled nearly 7%, dipping to the $92,000 zone.
- The cumulative crypto market cap shed 8% in just 24 hours, losing $500 billion to stand at $3.12 trillion.
- Shares of key crypto-related firms also suffered. Japanese firm Metaplanet, known for its Bitcoin treasury strategy, fell by 9.44%, while SBI Holdings saw a 3.6% decline.
- In Hong Kong, OSL Group and Boyaa also faced drops of 2.69% and 4.64%, respectively.
A Recovery Takes Shape
Just as the market seemed stuck in a downward spiral, relief came when Trump temporarily paused his tariff plans. Mexican President Claudia Sheinbaum negotiated a deal to delay tariffs for a month, which helped calm market fears.
The crypto market rebounded strongly:
- Bitcoin surged back from a low of $90,000 to over $101,000.
- Ethereum recovered from $2,251 to $2,827.
- Other altcoins, including XRP, Solana (SOL), and Dogecoin (DOGE), saw gains ranging between 10% and 20%.
Institutional investors seized the opportunity to buy the dip. CryptoQuant analyst Maartunn reported that the Coinbase Premium Gap — a key indicator of institutional interest — turned positive, reaching +103.6, signaling strong demand from U.S. buyers.
The Road to Recovery
Although the market shows signs of stabilization, recovery will likely be slow but steady. The Crypto Fear & Greed Index, with a score of 45, has moved into neutral territory, indicating improved market sentiment.
Bitcoin has now crossed the $102,000 mark, while Ethereum continues its climb.
The lesson here? Resilience. Despite the geopolitical chaos and massive sell-offs, the crypto market remains a beacon of opportunity. While short-term volatility can be unnerving, the long-term trajectory of digital assets remains promising. Consider taking advantage of this opportunity — buy the dip on Roqqu and position yourself to sell when the market recovers.
Stay informed and remember — every dip presents a potential opportunity.
