Crypto’s retail traders quickly blamed the broader cries of the crypto market Friday with US president Donald Trump announcing a 100% tariff in China, as they often look for something to point the finger to the falls, according to Santiment.
Analysts, however, say the reason for the market collapse runs deeper than just tariffs.
“This is a common ‘rationalization’ behavior from retailers, which needs to be directed to a single event as the cause of a cataclysmic downturn in crypto,” Santiment Says In a report last Saturday.
“After the crash, the crowd quickly jumped together to come together in a consensus of what could be linked to flush,” Santiment said, referring to the increasing social media discussions related to the same US-China tariff concerns.
US and China developments are important for retail businessmen
Although the geopolitical event is a catalyst for market decline, this is not the only factor, according to Analysts from Kobeissi letterwhich also taught “over -action and risk” in the crypto market. The analysts mentioned its heavy long bias, with about $ 16.7 billion in long-term liquid compared to only $ 2.5 billion shorts, a ratio of nearly 7-to-1.
The significant extermination event came as bitcoin (Btc) fell over 10% within 24 hours, with a pair of BTC/USDT futures in Binance falling less than $ 102,000 following Trump’s tariff announcement.
Santiment said the development between the US and China would “be the center” in shaping the decisions of the investor investors in the crypto retail, at least for a short time.
Bitcoin falling under $ 100,000 predictions may appear
Santiment added that if the conversations between Trump and Xi improve and lead to “positive news,” the retail retailer to crypto is likely to be cured.
Related: Crash on the market ‘does not have long-term basic implications’-analyst
However, if the tensions increase, traders should be bruised for more pessimistic price forecasts. “Expect for ‘Bitcoin Sub-100K’ Flood Floods to start opening,” Santiment said, and added:
“Bitcoin, whether we like it or not, acts similar to a risk of risk than a safe shelter at the time of the country’s intensity.”
Sentiment that collapsed after a decline in the crypto market, along with Crypto Fear & Greed Indexwhich measures the general sentiment in the crypto market, which drops to a “fear” level of 27 on Saturday updating.
That represents a sharp 37-point fall from the “Greed” Friday’s “Greed” reading, its lowest level for almost six months.
Magazine: Delayed
