- The crypto market plunged on Thursday due to Donald Trump’s renewed tariff threats and investor profit-taking, with Bitcoin falling below $108,000 and altcoins following suit.
- However, bullish technical patterns, strong ETF inflows, and corporate accumulation suggest the downturn may be short-lived and a rebound could be imminent.
A Sudden Crypto Crash Sends Shockwaves
The crypto market took a sharp dive this Thursday, with Bitcoin plunging below $108,000, sending a ripple effect across altcoins. Ethereum fell to $2,750, XRP dropped to $2.43, and Solana slid to $160. The global crypto market cap shrank by 1.4% to $3.4 trillion, while 24-hour liquidations spiked to $313 million.
This market-wide drop comes amid escalating global trade tensions and short-term profit-taking by investors.
Trump’s Tariff Threats Fuel Investor Anxiety
The sell-off was triggered by political uncertainty, as Donald Trump signaled plans to impose unilateral tariffs. With his 90-day pause on new duties ending July 9, Trump announced that he would notify top trading partners of final tariff offers. This follows US-China talks where modest progress was made, including agreements on rare earth exports and student visas.
However, markets remain wary. Trump’s unpredictable approach—often threatening tariffs before backing off—has coined a new catchphrase: “Trump Always Chickens Out” (TACO). Still, rising US inflation may pressure him to act this time, potentially shaking global trade and investor confidence.
Profit-Taking After Rallying Prices
Beyond geopolitics, analysts believe part of the dip is simply profit-taking. Bitcoin and altcoins have seen steady gains in recent months, and minor corrections are common in crypto cycles.
Why This Crypto Crash Might Be Short-Lived
Despite the downturn, several bullish indicators suggest a rebound may be near:
- Bullish Chart Pattern: Bitcoin has formed a cup-and-handle pattern, typically a sign of an impending breakout. With a projected upside of 30%, BTC could target over $140,000 in the near term.
- Institutional Optimism: Billionaire hedge fund manager Paul Tudor Jones reiterated his bullish stance, calling Bitcoin a must-own asset, especially amid growing US debt.
- Strong ETF Inflows: Investors poured $164M into Bitcoin ETFs and $124M into Ethereum ETFs on Thursday alone.
- Corporate Accumulation: Companies like GameStop, Trump Media, and Meta Planet are adding BTC to their treasuries, while exchange balances have dropped to their lowest since 2017—fueling scarcity and long-term bullish potential.
The crypto market may be down today, but strong fundamentals and rising institutional interest suggest that this dip could be a golden buying opportunity. Keep an eye on Bitcoin’s next move—because this crash might just be the calm before the next bull run.
