Cryptocurrency prices are crashing, the total market capitalization of all coins has been reduced from about 4% to $ 3.6 trillion.
Bitcoin (BTC) and most Altcoins were in red, with tokens such as virtuals protocols, bittensor, neo, and jasmycoin are top legues. All these tokens crashed more than 15% on Sunday.
The main reason for crashes bitcoin and other altcoins crashes is the risk-to-rising risk in the financial market between tariff risks.
President Donald Trump will apply 10% tariff on Chinese imports and 25% levy on Mexican and Canadian goods. The three countries have promised to retaliate on these tariffs, causing a threat to adequate economic crisis.
The new trade war has increased a large market volatility. US Benchmark Equity Index reduced as market on Friday Analysis Federal Reserve’s favorite inflation metric as well as the latest reading of Lump Tariff Danger.
Dow Jones, S&P 500, and Nasdaq 100 index all fell to about 1%. And American inflation increased the most in eight months, the Federal Reserve suggested that perhaps interest rates would not be cut soon at any time.
In addition to market volatility, these tariffs will affect inflation and Federal Reserve. Economists estimate that companies will increase prices to deal with the price changes. For example, General Motors and Ford vehicles brought from Mexico will see an increase of 25%. The same is true with other items such as television and smartphone.
Cryptocurrency prices fall in the United States due to adequate instability and economic risk. They also fall when the fed is excessive hawkish.
Bitcoin price double-top pattern formation
In addition, bitcoin and other altcoins are in red after forming a high -risk chart pattern in the east, which point forward.
It has formed a double-top pattern at $ 108,445, and its neckline is $ 88,940. A double-top is one of the most popular recession patterns in the market.
Bitcoin has also created a recession deviation chart pattern as the percentage value continues to fall in the oscillator and relative power index. The PPO indicator is taken from MACD, one of the most popular deviation patterns in the market.
Therefore, there is a risk that bitcoin will fall by $ 88,940, especially if it loses a 50-day moving average support. As such, altcunes are falling as an increase in bitcoin crash risk.
