Crypto Market Sees Breakout Crash, Loses $200 Million

The crypto market has experienced a violent crash, with over $200 million in liquidations in just 60 minutes, resulting in a total market value drop to $2.51 trillion, a loss of over 5% in less than 24 hours. Bitcoin and Ethereum have fallen significantly, with Bitcoin down 3.75% to $79,853 and Ethereum dropping 8.62% to $1,636, threatening to break the $1,600 support level.

The crash is attributed to a combination of macroeconomic tensions, speculation around Donald Trump's policies, and a strong domino effect triggered by the sale of futures contracts. The ongoing crash could be a jolt in a broader bullish trend or a signal of a deeper correction, and volatility is expected to remain high in the coming days. Several altcoins, including Solana, Cardano, and XRP, have also seen significant declines, with Solana plummeting 8.12% to $108.

Bitcoin's price action is struggling to recapture a key support area after a bearish breakout, with demand strong at around $75,000. A drop below this level could result in a 17% drop, while a supply imbalance between $70,600 and $74,400 increases the downside risk. The chart shows that large buy orders flow to exchanges like Binance and Coinbase at $75,000, while big orders are mostly sales at $85,000.

The Federal Reserve's uncertain economic outlook may lead to no interest rate cuts in 2025, which could support a bearish outlook. As the market continues to experience high volatility, investors will be watching closely to see if the price will drift lower, potentially filling the gap created in November, and providing a clearer view of the true trend.