Bitcoin and altcoins continue to decline as the recent crypto market downturn persists. BTC, which reached a record high of $111,900 last week, has fallen to $107,000—its lowest level since May 25.
Most altcoins have followed suit, with notable losers like Monero, Hyperliquid, Virtuals Protocol, and Fartcoin dropping over 10% in the past 24 hours.
Key market metrics reflect the turmoil:
- Futures open interest declined by 2.2% to $156 billion.
- $230 million in liquidations occurred within 24 hours.
The crypto crash aligns with a broader stock market sell-off, as the Dow Jones and Nasdaq 100 fell by 245 and 100 points, respectively.
Why Did the Crypto Market Crash?
1. Hawkish Federal Reserve Minutes
The Federal Reserve’s latest meeting minutes revealed a cautious stance on interest rate cuts, stating:
“Participants agreed that with economic growth and the labor market still solid and current monetary policy moderately restrictive, the committee was well positioned to wait for more clarity on the outlooks for inflation and economic activity.”
This signals prolonged higher rates, with analysts predicting potential cuts only by September or November 2025. Historically, crypto markets thrive when rate cuts are anticipated, as seen in the 2022 bull run.
2. Trade Tensions Between the U.S. and EU
Hopes for a swift trade deal between the U.S. and EU dimmed after reports suggested the Trump administration seeks unilateral concessions on issues like VAT and tech regulations. A potential 50% tariff on EU goods in July could inject further volatility into global markets.
3. Profit-Taking After Rally
Investors capitalized on recent gains:
- Bitcoin surged 50% from its April low.
- Altcoins like Monero and HYPE posted triple-digit gains.
👉 Bitcoin’s price history shows similar pullbacks after milestones, such as the April 2025 drop from $109,350 to $74,500.
Is the Crypto Bull Run Over?
Despite the downturn, key fundamentals remain strong:
- Rising ETF demand and corporate interest in Bitcoin.
- Shrinking supply: Exchange reserves hit a 7-year low, reducing sell pressure.
FAQ
Q: Should I sell my crypto during this crash?
A: Market corrections are normal. Evaluate long-term fundamentals before deciding.
Q: When will Bitcoin recover?
A: Recovery hinges on macroeconomic factors like Fed policy and institutional demand.
Q: Are altcoins riskier than Bitcoin now?
A: Altcoins often mirror BTC’s trends but with higher volatility. Diversification is key.
👉 For real-time market analysis, explore expert insights.
Disclaimer: This content is for informational purposes only. Cryptocurrency investments carry risks; conduct thorough research.
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