- Bitcoin dropped nearly 6% approaching US$80k while other major cryptocurrencies including Ethereum, Solana and XRP also suffered losses.
- Analysts from 10X Research report that approximately 70% of selling pressure came from investors who purchased Bitcoin within the last three months, suggesting widespread panic among newcomers.
- Market experts attribute the downturn to Trump’s threatened tariffs creating economic uncertainty and his Bitcoin reserve announcement being a classic “sell the news” event.
- Rather than simply holding through volatility, analysts recommend traders implement strict risk management strategies including stop losses and make decisions based on comprehensive market data, on-chain analytics and macroeconomic trends.
Bitcoin had a dramatic weekend. While ex-tropical cyclone Alfred brought more water than wind to Southern Queensland and Northern NSW, the crypto market seems to be losing steam too.
Despite US President Donald Trump hosting the inaugural White House Crypto Summit last Friday, it failed to prevent a crash.
Related: On The Radar – What to Watch This Week in Crypto
The crypto market is in the red, and not only the number one has seen substantial losses. While BTC is down 6% over the past day, nearing US$80k (AU$126.5k), Ethereum (ETH), Solana (SOL) and XRP all lost around 8%.
However, the biggest losses of the top dogs have been incurred by Dogecoin (DOGE) and Cardano (ADA), which are both down 12%.
Did Trump Just Deliver a Bear Market?
Seasoned investors would have seen this all before, so is this a good dip-buying opportunity?
According to 10X Research, much of the price chaos is due to recent buyers panicking.
With Bitcoin dipping below $80,000, approximately 70% of all selling came from investors who bought within the last three months, highlighting the dominance of recent entrants panic-selling into the decline.
10X ResearchAs per Swissblock analysts, the market is still extremely uncertain what 2025 will shape out to be. And Trump starting a global trade war certainly hasn’t helped calm investor’s nerves.
The looming threat of U.S. tariff implementation is the Sword of Damocles that Trump is swinging over the global economy. Markets are pricing in something that could have a devastating effect on valuations, effectively erasing the momentum we saw with the ‘Trump Pump’.
SwissblockAdditionally, Trump’s Bitcoin reserve order was already priced in, which makes it a classic “sell the news” event, the analysts added.
If all that wasn’t enough, Network Economist Timothy Peterson warned on X that the US Fed likely won’t be cutting rates in 2025 and that we are close to a bear market.
Analysts Say Traders Need to Make “Active, Informed” Decisions
So, HODL and be done with it? Not so fast, says 10X Research.
Their analysis suggests that in the context of high volatility in the crypto markets, traders need to employ stringent risk management strategies, including the use of stop losses to prevent substantial financial losses.
This is not about democratizing finance, nor is it a simple buy-and-hold strategy, as some suggest. Nor is this the time to be patient.
10X ResearchTo be successful, traders should make active and informed trading decisions based on a comprehensive understanding of reliable market data, on-chain analytics, market structures and macroeconomic and technical trends.
Related: Texas Senate Greenlights Bitcoin Strategic Reserve Bill Amid Trump’s BTC Reserve Order
Success in crypto requires access to reliable information, a deep understanding of on-chain data, market structure, macro and technical revenue trends, and, most importantly, effective risk management to protect capital.
10X ResearchSwissblock adds that though it looks like we could see a bullish recovery, it depends on Trump’s next moves.
The key lies in whether market pressures fully price in the impact of Trump’s policies and stabilize. Only then can we expect a relief rally, including for Bitcoin.
Swissblock
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