Crypto market falls across the board: Why are Bitcoin, Ethereum, DOGE, and SHIB all declining? | Market Analysis

Recently, the crypto assets market has experienced a general fall, with mainstream tokens such as Bitcoin (BTC), Ethereum (ETH), DOGE, and Shiba Inu (SHIB) all incurring losses. This fall is mainly attributed to new concerns over a potential trade war, which has shaken investor confidence.

🔑 Bitcoin leads the decline, and the market linkage effect is significant.

The key driving factor behind this collective decline is the fall in Bitcoin prices. As a market barometer, Bitcoin's weakness has once again dragged down Ethereum, DOGE, and SHIB Inu, which are highly correlated in price. In the past 24 hours, DOGE has fallen by 4%, with Ethereum and SHIB experiencing similar declines.

⚖️ Bitcoin volatility decreases, liquidation data is astonishing

Bitcoin is currently in a price stabilization period, with reduced volatility and trading within a smaller range. According to Coinglass data, Bitcoin has accumulated a liquidation amount of over $562 million while maintaining around the $108,000 level.

🌐 The shadow of the trade war looms, and market risk aversion is rising.

Recently, China issued a warning regarding the Trump administration's threat to impose additional tariffs, causing unease in global markets. With the August 12 trade agreement deadline approaching, uncertainty has increased. Crypto Assets are often the first area to be hit when economic pressures rise.

• Trump's Tariff Policy Impacts Markets: Trump proposed a 10% tariff on countries supporting the BRICS nations, exacerbating investor concerns amid growing speculation of economic decoupling.
• Heavy Taxes on Japan and South Korea: He also announced a 25% tariff on imports from Japan and South Korea, citing their so-called "unfair trade practices" that have led to a huge trade deficit between the United States and these two countries.

💼 Long-term holders cashing out? Analysts' opinions diverge.

Crypto analyst Ali Martinez pointed out that more Bitcoin long-term holders (HODLer) are starting to cash out recent gains, raising speculation about a potential market cool down. Despite on-chain data showing that institutions (Bitcoin treasury) are still actively accumulating, many investors have chosen to take profits during the current rebound.

😨 Low volatility suppresses trading, altcoin holders are worried.

Due to market volatility being low, traders are hesitant to enter the market due to concerns about continued price declines. This round of declines has also made shitcoin holders, including SHIB and DOGE fans, feel anxious as they usually closely follow Bitcoin's movements.

📈 Are crypto investors selling? Analysts remain optimistic.

Despite the sluggish market, several analysts remain bullish on the prospects of Bitcoin, Ether, DOGE, and SHIB:

• Technical formation suggests accumulation period: Technical analyst Mr. Wall Street points out that Bitcoin is forming a Descending Broadening Wedge in the range of $90,000 to $110,000 — this historical pattern is often associated with the chip accumulation phase and indicates a potential explosive rise that may occur in the future.
• Key indicators have not peaked, liquidity supports the bull market: Analysts point out that key indicators such as MVRV (Market Value to Realized Value Ratio) are still below historical peaks. The continued increase in global liquidity indicates that the crypto assets bull market has not yet ended. They believe that prices could break through $117,000 and are expected to reach the range of $140,000 to $170,000.
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• Large transfers are not sales; retail panic may be a buying signal: In response to concerns raised by recent large wallet movements in Bitcoin, analysts clarified that these large transfers are mostly internal adjustments rather than sales. They emphasized that when retail investors panic sell (FUD), it often indicates the last wash before a price surge.