- Bitcoin lost $ 6,000 within a few hours and dropped below $ 83k during a serious sale.
- Ethereum crashed by almost 15%, driven by massive liquidations and concerns of trade wars.
President Donald Trump’s victory initially fed a strong bullish momentum in the cryptomarket. However, the landscape has shifted since then, with unprecedented volatility that engages digital assets.
Large cryptocurrencies such as Bitcoin [BTC] and Ethereum [ETH] Have experienced extreme price fluctuations. The frequency of Flash -Crashes has risen, so billions in market value are wiped out.
Since January, these rapid decreases have become more frequent, which causes them to worry about investors. With Trump’s new tariff threat on the EU, the global crypto market capitalization was $ 2.86 T, at the time of press, after a fall of 1.88% during the last day.
It is not surprising that Trump’s relocation has disappointed the crypto community, as emphasized by X (formerly Twitter) user cryptogoos. He explained,
Source: Cryptogoos/X
Why do flash -crashes take place?
Analysts see this and suggest that several factors stimulate this instability and offer deeper insights into the underlying market dynamics.
According to the Kobelsi Letters Recent post, the rise in flash -crashes emphasizes the growing unpredictability of the crypto sector.
Source: De Kobeissi -Letter/X
Flash -Crashes in the Cryptomarkt have become more frequent and often occur without significant Bearish News. As a result, investors climb to answers.
Bitcoin’s sharp fall On 26 February, extreme fear fed and pushed the market sentiment to a low -month -old low at 25.
From the last update, the fear index has immersed Up to 10, signaling intense market fear.
In the meantime, Ethereum was even confronted Losing steeperexperiencing a stunning crash of 15% in the past week and about 5% in the last 24 hours, powered by massive liquidations and escalating problems with the trade war.
Institutional versus investors in the retail trade
The Kobeissi letter further gave insight and identified a growing gap between institutional and retail investors as an important engine behind recent Flash -Crashes.
Institutional players, in particular Wall Street Hedgo Funds, have staged their short positions on Ethereum on Ethereum since November 2024, as a result of an unprecedented level of Bearish sentiment.
In just one week, short positioning on Ethereum increased by more than 40%, which contributes to the sharp fall of 40%since December, while Bitcoin has fallen by 15%.
On the other hand, settings continue to collect bitcoin, while retail investors feed extreme volatility in smaller altcoins such as Solana.
This “polarization” of the market has created liquidity “air bags”, making it more serious by activating Cascade liquidations and intensifying the price instability.
Despite the recent volatility, the market sentiment seems to shift against crypto to careful optimism.
What is waiting for us?
Andre Dragosch, European main research in Bitwise, pointed to the Cryptoasset sentiment index, which indicates a strong contrary opportunity for Bitcoin.
He noted that widespread bearish sentiment about flows, on-chain statistics and derivatives suggests a limited downward risk, making the current price levels attractive.
Source: Andre Dragosch/X
Not all experts share this position, however – Standard Chartered has warned that Bitcoin can experience further disadvantage before he regains his bullish momentum.
Source: Walter Bloomberg/X
Such as BTC floating About $ 86,745.68, with 2.67% a decrease from the last 24 hours at the time of the press, investors remain divided on whether the worst is really over.