Crypto Market Crash: Are China’s Bitcoin dump and Trump’s Nvidia policy the reasons for the fall? | Hinglish Analysis
What happened in the crypto market today?
Today the cryptocurrency market has seen a tremendous fall. On April 16, the valuation of the overall crypto market fell by about 3.65%, which means that the value of $97 billion vanished. The total valuation of the market is now just $2.58 trillion. But the question is: why is this fall happening?
There are many big reasons behind this decline, in which the most impactful factors are:
Reports of China dumping its $16 billion Bitcoin stash
New export restrictions on Nvidia under Trump
Tsunami of liquidation in the Futures market
Weak signals on technical charts
Let’s understand each factor in detail.
- Trump’s Nvidia Export Ban and Fall of Tech Sector
The Donald Trump administration has imposed new export restrictions on Nvidia, the effect of which is being seen not only on the stock market, but also on the crypto market. This move has raised the fear of a new trade war between the US and China. The Nasdaq 100 futures fell more than 2.30% and stocks of European chipmakers such as ASML Holding NV also fell more than 7%.
The crypto market traditionally correlates with risky assets, and when stocks fall, crypto also falls. This trend has been continuing since 2020, and the same pattern is seen today.
- Will China dump Bitcoin?
Another big news is that China is going to dump its seized Bitcoin. According to reports, some Chinese municipalities are selling around 15,000 BTC (valued at around $1.4 billion) on offshore exchanges to support their domestic economy.
The CEO of CryptoQuant had previously claimed that China sold $20 billion worth of Bitcoin seized in the PlusToken scam in January. But new data shows that China still holds around 190,000 BTC – worth more than $16 billion at today’s rates.
Previous examples such as Germany and the US Bitcoin sell-offs created panic in the market. So if China also does this, then the crypto market can go even lower.
- Liquidation of $245 Million in Futures Market
There was a lot of turmoil in the futures market of crypto today. There was a liquidation of $245.37 million in just 24 hours. Most of the loss was of long positions, whose value was $173.83 million, while only $71.55 million was liquidated in short positions.
Most liquidation was seen in Bitcoin and Ethereum –
BTC: $51.54 million
ETH: $49.81 million
Mantra OM: $18.33 million
Solana (SOL): $12.74 million
Worldcoin (WLD): $11.58 million
This level of liquidation makes the market sentiment more negative.
- Technical charts also give bearish signal
If we talk about technical analysis, then the crypto market could not break the resistance of $2.6 trillion. This level comes near the upper boundary of the descending channel, from where it has received rejection repeatedly before.
50-day EMA (Red Line): $2.72 trillion
200-day EMA: $2.81 trillion
The market is trading below both, which is a bearish signal. The RSI (Relative Strength Index) is also at 47, which is below the neutral level of 50. Meaning buying pressure has weakened.
If this trend continues, the market could fall to $2.2 trillion in the next few days, which was a strong support zone at the end of 2023.
- Gold left Bitcoin behind
When everything is falling, people run towards safe-haven assets – and this is what is happening with gold. Today gold made a new record – $3,317 per ounce. This year gold has already given a return of 26.50%, while Bitcoin is down 11.50%.
This clearly shows that investors’ risk appetite has decreased – and they are running away from risky assets like crypto.
Will the crypto market fall further now?
Many uncertain factors are still active in the crypto market – Trump’s tariff policies, the possibility of China dumping BTC, and the overall risk-off sentiment. Bearish pressure will remain until the market breaks out above $2.72 trillion.
If you are an investor, it is important to remain cautious now. Volatility will remain high in the short-term, and new developments can move crypto prices sharply.