Author: Bitpush News Mary Liu
After US President Donald Trump announced a 25% tariff on imported steel and aluminum, the cryptocurrency market saw a slight decline on Tuesday.
Bitpush data shows that Bit declined 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) were relatively stable.
In the past 24 hours, the total cryptocurrency market capitalization fell 0.98% to $3.15 trillion. CoinGlass data shows that the total amount of crypto liquidations during this 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's performance mainly to the Federal Reserve's recent decision to keep interest rates unchanged, as well as broader macroeconomic concerns. In uncertain situations, investors often seek safer assets like gold or the US dollar, which is usually accompanied by a decline in interest in risky assets, including cryptocurrencies.
In a report on Tuesday, Hargreaves Lansdown Senior Equity Analyst Matt Britzman pointed out that historically, trade war concerns triggered by tariff threats "come fast and go fast, but this time, savvy investors are not so sure; currency, bond and commodity traders are hedging their bets as tensions escalate, with the US dollar, US 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 dropped to 1.05.
MVRV is a key indicator for measuring the profitability of Bit 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 declines further, it may put greater pressure on the Bit price, as it 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 yet significant. However, the cost basis of short-term holders, around $92,000, needs to be closely monitored. This level is a key support for the Bit price, reflecting the average cost at which short-term investors purchased BTC. If Bit price drops 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, where a large number of orders are concentrated, usually acts as a support or resistance. Bit has recently explored the lower levels to absorb liquidity, and the current price is hovering below $94,000, which is also an important liquidity zone. If this pattern continues, Bit 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.
