The drawdown in the broader crypto market has extended to this weekend as losses shifted from Bitcoin (BTC) to altcoins. The combined market cap has lost 2.82% to $2.68 trillion, which suggests the selloff might deepen more. With the mix of bullish news in the trailing 7-day period, the question among analysts remains what is behind the latest slump.
What Is Behind Crypto Market Crash?
Since the inauguration of President Donald Trump, the broader digital currency ecosystem has witnessed positive backing.
As reported earlier by CoinGape, President Trump granted full pardon to Arthur Hayes, and other BitMEX co-founders Benjamin Delo and Samuel Reed. While this news is localized to the beneficiaries, it generally signals the positive shift in White House’ perception of the industry.
Despite these updates, the crypto market is still reeling with losses. The same Trump administration’s trade policies have continued to weigh down investor sentiment. The April 2 reciprocal tariff timeline has placed investors on the edge.
These tariffs and trade wars have ushered in economic uncertainties and potential inflation drag. With the Federal Reserve keeping rates unchanged, the impact of inflation may force traditional firms to adjust their positions. This in turn impact the crypto market sentiment overall.
Bitcoin and Altcoin Performance Review
As of writing, the price of BTC has lost its $83,000 support and currently trading at $82,476.30 per data from CoinMarketCap. The top coin has fallen by 2.43% in 24 hours and has extended its Year-to-Date (YTD) losses to 12.5%.
Top altcoins have also lost their positions with Ethereum down 2.25% to $1,846. XRP has fallen by more than 3% to $2.115, while Cardano has shed off 3.92% to $0.6721. The altcoin response has seen Dogecoin forming a wedge pattern in what may serve as a make-it-or-break-it switch for the memecoin.
While it appears as though many of these top assets are bottoming out, their correlations with Bitcoin may extend their overall drawdow.
What Next for the Crypto Market?
Thus far this year, top coins like Bitcoin have often showcased resilience in the face of massive sell-off and crypto liquidations. Although the current price floor for Bitcoin remain undefined, with analysts keeping an eye on the $82,000 floor.
The digital currency has not breached this level in close to two weeks. While legendary trader Peter Brandt agrees BTC price may fall to $65,635, this bearish projection may be averted if the $82,500 support holds through the weekend.
Altcoins may likely boost their price recovery by relying on BTC breakout and their internal fundamental updates.
The post Here’s Why Crypto Market Is Bleeding Today appeared first on CoinGape.
