Crypto Market faces Challenges as Bitcoin and Altcoins Decline
The crypto market is showing signs of a downturn. Bitcoin, altcoins, and the Fear & Greed Index have hit their lowest points in months. This suggests the bull run may be over.
Bitcoinās price has fallen below $104,000 for bitcoin, a level not seen since June.
The Crypto Fear & Greed Index has dropped to 26, indicating investor fear. The market cap of altcoins, excluding Bitcoin, Ethereum, and stablecoins, has fallen to $670 billion from a high of $911 billion this year. The Altcoin Season Index is also down to 25.
Several factors are contributing to this decline. Global economic risks, including tensions in the banking sector and the potential decoupling of major economies, are causing concern. Last Fridayās market crash was sparked by U.S. President Donald Trumpās statement about imposing tariffs on Chinese goods.
A prolonged U.S.-China trade war could push inflation up and make it harder for the Federal Reserve to cut interest rates. Gold has also emerged as a safer investment than crypto, attracting more investors.
However, there are reasons to believe the crypto market could rebound.Historically, Bitcoin has bounced back after entering a bear market.the Federal reserve may continue to cut interest rates, and a positive outcome from the upcoming Trump-Xi meeting could boost the market. Additionally, the end of the government shutdown and approval of altcoin ETFs could provide a boost.
While the current situation looks challenging, these potential catalysts offer hope for a recovery in the coming weeks or months.
