Author: Bit Push News Mary Liu
After U.S. President Donald Trump announced a 25% tariff on imported steel and aluminum, the cryptocurrency market saw a slight decline on Tuesday.
Bit push data shows that Bit coin fell 1.63% in the past 24 hours, with the current trading price hovering below $96,000, and Ethereum fell 2.12% to around $2,600. XRP and Solana (SOL) saw little volatility.
In the past 24 hours, the total market value of cryptocurrencies has fallen 0.98% to $3.15 trillion. CoinGlass data shows that the total amount of liquidation in the crypto network during the same period reached $233 million, mainly in long positions, equivalent to about $149 million.
Trump Tariffs and Macroeconomic Uncertainty
MEXC Vice President Tracy Jin attributed the market trend mainly to the Federal Reserve's recent decision to keep interest rates unchanged, as well as broader macroeconomic concerns, in which case investors often seek safer assets such as gold or the U.S. dollar, usually accompanied by a decline in interest in risky assets (including cryptocurrencies).
In a report on Tuesday, Hargreaves Lansdown senior equity analyst Matt Britzman noted that history has shown that trade war concerns triggered by tariff threats "come and go quickly, but this time, savvy investors are not so sure; currency, bond and commodity traders are hedging their bets as tensions rise, with the U.S. dollar, U.S. Treasury yields and gold prices rising."
LMAX Group currency strategist Joel Kruger believes this is more about the market reacquainting itself with Trump's strategy, rather than any substantive risk associated with extreme tariff measures.
Joel Kruger said: "While the new announcement may bring short-term volatility, we believe this risk will not trigger any major disruption, and we expect crypto assets to continue to be well supported by long-term participants seeking to buy the dip."
$92,000 Support Level Becomes Key
Checkonchain data shows that the market value to realized value ratio (MVRV) of short-term holders (STH) has fallen to 1.05.
MVRV is a key indicator of the profitability of Bit coin holders. When MVRV is above 1, it means investors are still in profit; below 1 means investors are in loss. The current MVRV of 1.05 indicates that the profit margin of short-term holders is shrinking. If MVRV falls further, it may put greater pressure on the Bit coin price, as this means more short-term holders are approaching the breakeven point.
Currently, MVRV is still above 1, indicating that the selling pressure from short-term holders is not significant. However, the cost base of short-term holders, around $92,000, needs to be closely monitored. This price level is a key support for the Bit coin price, reflecting the average cost at which short-term investors bought BTC. If the Bit coin price falls to $92,000, it may trigger more sell-offs, as short-term holders may choose to cut their losses and exit. If it breaks below this support level, market sentiment may further deteriorate, leading to an accelerated price decline.
In addition to the MVRV indicator, the liquidity zone is the area where a large number of orders are concentrated, usually acting as support or resistance. Bit coin has recently explored the lows to absorb liquidity, and the current price is hovering below $94,000, which is also an important liquidity zone. If this pattern continues, Bit coin may further explore the $92,000 level. If it fails to defend this key support, the selling behavior of short-term holders may exacerbate the downward pressure.
