In a recent analysis by Glassnode, it was revealed that the latest U.S. tariff announcements have considerably influenced major financial markets, resulting in some having the lowest trading volumes observed since March 2020. This downturn has led to stagnation in inflows into mainstream digital assets, creating reduced liquidity and presenting formidable challenges for market participants. Notably, the selling pressures associated with fluctuations in the prices of Bitcoin and Ethereum are showing signs of diminishing, suggesting that immediate selling might be approaching its conclusion.
The current sell-off in the digital asset sector has contributed to a substantial dip in the total market capitalization of altcoins, which has plummeted from approximately $1 trillion in December 2024 to the current valuation of $583 billion. Analyzing on-chain data and technical models, experts have identified the $93,000 mark as a pivotal psychological threshold for Bitcoin. To regain upward momentum, this price point is crucial for Bitcoin’s performance, while maintaining a strong defense from the $65,000 to $71,000 range remains imperative for bullish sentiment.