The cryptocurrency market has just witnessed one of the biggest price crashes of the year as bitcoin’s price crash saw Bitcoin fall to $74,000. The main cause stems from escalating trade tensions between the US and China, particularly after the ban on selling Nvidia chips. This event not only affected Bitcoin but also spread across the entire crypto market, causing concern among investors. Is this a sign of a major correction or just short-term volatility?
Main causes leading to bitcoin’s price crash
Bitcoin, the world’s largest cryptocurrency, unexpectedly dropped from $80,000 to $74,000, marking the lowest level of the year. The main cause of this decline is the increasing trade tensions between the US and China. Specifically, the US government imposed a ban on selling Nvidia’s H20 chips to the Chinese market, aiming to limit the country’s technological development. This move not only caused Nvidia’s stock to drop by 8% but also created a domino effect, negatively impacting the technology and cryptocurrency markets.
Bitcoin, often seen as digital gold, tends to experience significant volatility during global economic instability. The US ban has heightened investor concerns, leading to a wave of selling off high-risk assets like crypto. Additionally, other factors such as rising inflation and tightening monetary policies by central banks have also contributed to the market pressure.
Detailed analysis of the price crash
According to data from CoinDesk, Bitcoin fell by more than 7% within 24 hours, from $80,000 to $74,000. This is the largest drop since January 2025, when Bitcoin hit a low of $70,000 due to regulatory concerns. Compared to historical periods, this price crash is similar to the “Crypto Winter” of 2022, when Bitcoin dropped from $60,000 to $30,000 over a few months.
Technical charts show that Bitcoin has broken through the key support level at $75,000, opening the possibility of further declines to $70,000 if there is no quick recovery. Indicators like the RSI (Relative Strength Index) are at 30, indicating that Bitcoin is in an oversold condition, which could lead to a short-term rebound.
Impact on the broader crypto Market
The decline of Bitcoin has led to a ripple effect across the entire cryptocurrency market. Altcoins like Ethereum, Solana, and BNB also recorded drops of 5-10%. The crypto lending market, which was valued at $64.4 billion in 2021, has shrunk to $36.5 billion by the end of Q4 2024, reflecting investor caution.
Additionally, recent hacks such as the Phantom Wallet incident (loss of $500,000) and the ZKsync hack (hacker minted $5 million ZK tokens) have further increased market instability. However, not everything is negative: projects like Celestia with its mamo-1 testnet and Polyverse with its multi-chain shooter game are bringing hope for continuous innovation and sustainable development in the market.
Community and expert reactions
The crypto community has had mixed reactions to this event. Some retail investors have panicked and sold off, while long-term investors see this as an opportunity to buy at a lower price. Market analyst Michael Saylor stated: “Volatility is the nature of Bitcoin. Those who understand its technology and long-term value will not be swayed by short-term price crashes.”
On the other hand, economist Nouriel Roubini, known for his negative stance on crypto, warned: “The cryptocurrency market is facing many systemic risks, from regulatory issues to cybersecurity. Investors should be cautious.”
Future prospects of bitcoin
Based on technical and fundamental factors, the short-term outlook for Bitcoin remains uncertain. If trade tensions continue to escalate, Bitcoin could drop to $70,000. However, with major institutions like Fidelity and GameStop actively participating in the market, there could be new demand and support for the price in the long term. Technically, if Bitcoin can recover and maintain above $75,000, it could move towards the resistance level of $80,000. Conversely, if it breaks below $70,000, the price could drop further to $65,000.
Bitcoin’s price crash to $74,000 is a notable event, reflecting the sensitivity of the crypto market to global economic fluctuations. While it brings concerns, this event also opens opportunities for long-term investors. To stay updated with the latest developments and seize opportunities, follow Copy Trader Crypto platforms to learn from professional traders and get the hottest crypto news.