The crypto market is again in the spotlight, as China denied trade talks with the US, contrary to what President Donald Trump mentioned. This puts the market, which is currently correcting, at risk of a significant crash, losing this week’s gains in the process.
What’s Next For The Crypto Market?
The crypto market is at risk of a decline following China’s denial of ongoing trade talks with the US and President Donald Trump. According to a Bloomberg report, China’s Commerce Ministry spokesman He Yadong dismissed talks about both parties making progress on a tariff deal, stating that “any reports on developments in talks are groundless.
He Yadong also urged the US to “show sincerity” if it wants to make a deal. This development comes after Trump remarked that there were active talks with China daily. As CoinGape reported, the US President also suggested that he would look to cut the 145% tariffs that he had earlier imposed on the Asian country.
The tariff war has had a negative impact on the crypto market and could again derail the rally that the market is currently witnessing. For context, the Bitcoin price has rallied to as high as $85,000 this week while altcoins have also recorded significant gains.
However, it is worth mentioning that the market, led by BTC, looks to have decoupled from stocks, with investors now viewing the leading crypto as a safe haven asset similar to Gold rather than a risk asset. As such, if uncertainty around the ongoing US-China trade war grows, then there is the possibility that Bitcoin and other crypto assets could sustain this rally.
What’s Next For BTC & The Broader Market
Crypto analyst Titan of Crypto has provided an update on the Bitcoin price action and what could come next for BTC and the broader crypto market. In an X post, he stated that the previous daily low (PDL) at around $92,700 has been taken, and a large Fair Value Gap is currently supporting the price.
The analyst stated that the next points of interest are the previous daily high and the previous monthly high at $95,000. Titan of Crypto remarked that the direction should favor upside if the lagging span manages to break out of the Kumo Cloud.
However, if a deeper pullback occurs, he mentioned that Tenkan remains the key support level to watch. The Tenkan is currently at around the $86,000 range.
Ethereum whales have been aggressively buying the ETH price dips while adding a total of 1.1 million coins within just the past 48 hours. Following President Donald Trump’s signing of the executive order for the US strategic reserve, ETH has seen a 6% drop today amid the broader market correction. However, institutional players could once again charge in leading to trend reversal soon.
Ethereum Whales Are Aggressively Buying the Dips
Crypto analyst Ali Martinez has highlighted a significant development in the Ethereum market, revealing that whales have purchased 1.10 million ETH within the past 48 hours.
Source: Ali Martinez
The sudden accumulation has raised speculation within the community, with Martinez questioning whether the whales have insider knowledge of upcoming market developments. This surge in whale activity could signal confidence in Ethereum’s future prospects or an anticipation of a major event.
A day before, Donald Trump’s DeFi project World Liberty Financial purchased $10 million worth of Ethereum. Overall, they purchased a total of 4,468 Ethereum (ETH) at a price of $2,238 per ETH.
The ETH whale action has surged over the past week, along with an additional purchase of 110,000 ETH. Historical data suggests that significant accumulation by Ethereum whales often precedes periods of price stabilization or upward movement for Ethereum. “As long as Ethereum $ETH stays above $2,200, the odds of a rebound increase,” noted analyst Martinez.
Currently, the ETH price is trading 5.75% down at $2,170 levels with a market cap of $261 billion. The 24-hour liquidations have shot up above $71 million, of which $52.96 million is in long liquidations, despite the executive order for US strategic reserve involving ETH.
Will ETH Price Bounce Back Strongly From Here?
On-chain analytics firm Santiment revealed that Ethereum sentiment has dropped to its lowest levels of the year amid strong underperformance. Despite the bearish mood dominating social media discussions, Santiment suggests this could be a positive indicator for long-term holders.
Source: Santiment
Crypto analyst Titan of Crypto dismissed fears about Ethereum’s decline, emphasizing that the second-largest cryptocurrency remains technically robust.
According to the analyst, Ethereum continues to move within a broadening wedge pattern—a bullish technical setup. Additionally, ETH recently revisited the “Reload Zone” (RLZ), a key price area where professional traders often look to initiate long positions or accumulate more. Also, the below image shows that the RSI is in the support zone and likely to bounce from here.
The European Central Bank (ECB) cut interest rates by another 25 basis points today, but the crypto market has hardly noticed. This highlights the European market’s declining influence over the crypto sector compared to the US.
Meanwhile, the crypto community is praying for rate cuts in the US, and false tariff rumors caused a massive pump. These policies still matter, but Europe is losing its macro influence.
The ECB Cuts Rates To Crypto Ambivalence
Global recession fears are circulating throughout the crypto market, and regulation plays a key role in them. US investors have been desperate for a rate cut in the hopes that it could provide a bullish narrative.
None has yet materialized. However, the ECB cut interest rates today for the sixth consecutive time, yet the crypto market barely reacted.
“The outlook for growth has deteriorated owing to rising trade tensions. Increased uncertainty is likely to reduce confidence among households and firms, and the adverse and volatile market response to the trade tensions is likely to have a tightening impact on financing conditions,” the ECB said in a public statement.
According to price data, the total crypto market cap has decreased by 0.2% since the ECB announced these rate cuts. Of the top 10 largest assets, all of them posted gains today except one.
These gains came back when the pause actually happened. So, macro influence is still very strong in the current markets; it’s specifically that the ECB and Europe are losing influence.
The European Union isn’t the only economic bloc that’s losing its power in the space. Yesterday, the British government announced that inflation was lower than expected, potentially enabling another rate cut.
This, too, had a negligible impact on crypto. Macroeconomic concerns still impact the crypto market, but its strongest links are to the US and Asia.
It’s still the world’s largest stablecoin despite losing out on the entire European market. In fact, since then, it has taken steps to better integrate with US regulations.
Tether relocated to El Salvador, giving it close proximity to the US and easier access to the Latin American market. This growth area is apparently more fruitful than trying again in Europe.
The ECB’s rate cuts barely impacted the crypto market, but that doesn’t mean that the industry will ignore the whole continent. Moving forward, however, EU operations will matter less and less to the largest companies.
This mirrors broader trends, as international capital is refocusing away from Europe. It’s only natural that crypto is part of that pattern.
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