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The cryptocurrency market is witnessing a downturn as Bitcoin struggles to hold its ground after reaching near its all-time high. The overall crypto market capitalization has fallen by around 4%, now sitting at approximately $3.54 trillion. Let’s dive into the factors driving this decline.
Trumps Accused of Pump and Dump Scheme
One key event shaking the market involves accusations against Donald Trump and his team regarding a “pump and dump” scheme. Over the weekend, Trump-backed memecoins, including the Official Trump (TRUMP) token and Melania Trump’s self-branded memecoin, launched and soared in value.
Together, these tokens reached a combined market cap of over $15 billion. However, critics have accused the Trump family of manipulating the market for personal gain, which has created uncertainty among investors.
Profit-Taking Hits Bitcoin
Bitcoin, currently trading at $102,484, has seen a minor drop of 2%. This comes after an impressive 10% surge since in the last weeks. However, short-term holders appear to be cashing in on profits, contributing to the current price dip.
On-chain data from Santiment reveals that the 7-day Market Value to Realized Value (MVRV) ratio is nearing levels where investors typically book profits. Historically, when this indicator’s 7-day moving average (MA) reaches around 3%, a reversal tends to occur.
Liquidations Add to the Pressure
The market has also experienced heavy liquidations. According to CoinGlass, $1.18 billion worth of positions were liquidated in the past 24 hours as Bitcoin briefly dropped below $100,000.
Long traders were hit the hardest, with $921 million in liquidations compared to $260 million in short positions. Binance recorded the largest single liquidation order, valued at $15.24 million.
What Next For BTC?
Despite the dip, Bitcoin’s breakout above $99,800 is seen as an important step forward. Experts believe the next key level to watch is $105,700. If Bitcoin moves past this, it could lead to higher prices.
While some profit-taking may cause a pullback into the $99,100–$100,400 range, strong buying interest at these levels could reignite momentum.Using Fibonacci levels, Bitcoin’s next major target is projected at $120,362, signaling optimism for the weeks ahead.