As losses transferred from Bitcoin (BTC) to altcoins, the decline in the larger cryptocurrency market has continued into this weekend. At $2.68 trillion, the combined market capitalization has dropped 2.82%, indicating that the selloff may continue to worsen. Analysts continue to wonder what is behind the most recent decline despite the mix of positive news during the previous seven days.
Why Did the Crypto Market Collapse?
Positive support has been shown for the larger digital currency ecosystem since President Donald Trump took office. President Trump fully pardoned Arthur Hayes and the other BitMEX co-founders Benjamin Delo and Samuel Reed, as CoinGape previously reported. Although this news is specific to the recipients, it generally indicates that the White House’s opinion of the sector has improved.
The cryptocurrency market is still suffering losses in spite of these upgrades. Investor sentiment has been negatively impacted by the trade policies of the same Trump administration. Investors are on edge due to the April 2 reciprocal tariff timeline.
Economic uncertainty and the possibility of inflation have been brought about by these tariffs and trade wars. The impact of inflation may compel established businesses to modify their positions, especially when the Federal Reserve is maintaining rates at their current level. This in turn affects the general mood of the cryptocurrency market.
Review on Bitcoin and Altcoin Performance
According to CoinMarketCap data, the price of Bitcoin is currently trading at $82,476.30 after losing its $83,000 support. The leading coin’s 24-hour decline has increased its Year-to-Date (YTD) losses to 12.5%.
The leading altcoins have also lost ground, with Ethereum falling 2.25% to $1,846. Cardano has down 3.92% to $0.6721, while XRP has dropped more than 3% to $2.115. Dogecoin has formed a wedge formation in the altcoin reaction, which could be a make-or-break moment for the memecoin.
Even if it looks like a lot of these top assets are bottoming out, their connections to Bitcoin could prolong their total decline. Some analysts predict that the majority of altcoins will exhibit a decoupling, making them immune to the swings of Bitcoin.
What Will Happen to the Crypto Market Next?
Leading cryptocurrencies like Bitcoin have so far this year demonstrated tenacity in the face of significant sell-offs and cryptocurrency liquidations. Analysts are watching the $82,000 floor, although the current floor for Bitcoin’s price is still unclear.
It has been about two weeks since the digital currency broke through this barrier. Legendary trader Peter Brandt concurs that the price of bitcoin may drop to $65,635, but if the $82,500 support holds through the weekend, this pessimistic forecast might be avoided.
By depending on the Bitcoin breakout and their internal fundamental revisions, altcoins may be able to accelerate their price recovery.
