Why go downcoin and old coins down

A crypto crash captures bitcoin and old coins. The Bitcoin course crashed to $ 100,000 and thus dismissed part of the recent profits that he had achieved in his record high in May. Other old coins such as LivePeer, Zebec Network and Kekius Maximus broke down in two digits.

Why the crypto crash happens

There are three main reasons for the crash of Bitcoin and old coins. First, they react to the continued dispute between President Donald Trump and Elon Musk, the richest person in the world.

Musk, who spent a fortune on the fact that Trump was chosen, has critically commented on some of Trump's measures. He criticized his trade war and is now asking the congress to vote against Trump's spending package, which is known as “Big Beautiful Bill”.

In the draft law, the subsidies for electric vehicles are shortened, which Musk will hit directly. It also increases the US deficit and debts and thus undermines the work that Elon Musk has done as head of the Department of Government Efficiency (Doge).

The dispute between Trump and Musk led the Tesla shares to collapse by over 14 %. The crypto prices fell when the mood was deteriorated among investors.

Learn more here: Ripple ETF inflows reach a record low-how is the XRP price continue?

Profit treatment among investors

Bitcoin and old coins fall after the recent climb due to the profit treatment. The Bitcoin price recently increased to a record high of $ 111,900 and increased by over 50 % compared to its low in April. Most old coins, especially the meme coins, also rose in the three -digit range.

It is normal for Bitcoin and other old coins to fall strong after they have reached an important resistance brand. The Bitcoin Prize in January initially rose to a new high of $ 109,300 and then fell $ 74,300 in April. This means that these tokens will ultimately recover.

Seasonality contributed to the crypto market crashed

In addition, Bitcoin and old coins have crashed due to seasonality, since June is usually one of the worst months for the cryptom market. Bitcoin has achieved an average return of minus 0.50% in June since 2013, while Ethereum fell by over 7%.

These coins fall in June because the summer season begins in which many investors travel. The new crypto winter could therefore last until the third quarter if the story is repeated.

Telephone call between Trump and Xi Jinping

The other main reasons why Bitcoin and most old coins fall are Trump's telephone call with XI Jinping to solve trading problems.

The conversation should calm the relationships between the two countries because the latest trade agreement faces challenges.

Although the call was important, it did not bring any major results – both sides only promised to stay in conversation. The main problem is that the trade war could escalate, which leads to fear among the market participants and strains stocks and crypto courses.

Source link