Bitcoin Plunges to $91K Amid Market Turmoil

The cryptocurrency market has been rattled as Bitcoin (BTC) nosedived 16% to $91,000, triggering concerns among investors. This steep drop comes amid broader market sell-offs, with Ethereum (ETH) and leading meme coins shedding nearly 20% of their value. The primary catalyst? Speculations of a trade war fueled by U.S. President Donald Trump's latest tariffs.

Technical Analysis
Bitcoin's price plummeted to an intraday low of $91,242, marking one of its most significant drops in recent months. Despite rebounding slightly to 94K, BTC’s movement reflects extreme volatility. Key technical indicators suggest:

- Support Levels: The next critical support zone lies near 90K, a psychological level that, if broken, could lead to further declines.

- Resistance Levels: BTC faces immediate resistance at 100K, with further upside contingent on market recovery.

- Liquidations: Over $397 million worth of BTC long positions were liquidated in the past 24 hours, amplifying selling pressure.

- Bitcoin Dominance: BTC dominance surged 2.76% to 61.38%, indicating that altcoins are suffering heavier losses compared to Bitcoin.

Additionally, the 9.5% drop in the total crypto market cap to $3.04 trillion, alongside a 182% increase in trading volume to $286.91 billion**, signals panic-driven trading behavior.

Trade War Fears & Market Uncertainty
The backdrop for this crypto crash is rooted in macroeconomic developments, particularly **Donald Trump’s new tariffs on Canada, Mexico, and China**. The prospect of escalating trade tensions has spooked global investors, leading to a risk-off sentiment across financial markets.

Key fundamental factors contributing to Bitcoin’s decline:
1. Global Trade War Speculations – Trump's tariff policy has sparked fears of retaliatory measures, which could weaken global economic stability and reduce institutional appetite for risk assets like cryptocurrencies.

2. Market Liquidations – Over $2 billion worth of crypto liquidations occurred in the past 24 hours, intensifying downward momentum.

3. Investor Sentiment Shift – Uncertainty prevails as market participants remain divided, with some anticipating a rebound while others brace for further declines.

4. Macroeconomic Headwinds – Broader economic factors, including inflation concerns and regulatory uncertainties, add pressure to BTC's price action.

What’s Next for Bitcoin?
While the current downturn is causing fear, Bitcoin has historically demonstrated resilience in the face of macroeconomic turmoil. The coming days will be critical, with key factors to watch including:

- 90K Support Test – If Bitcoin holds this level, a relief rally could follow, potentially targeting 100K resistance.

- Macroeconomic Developments – Any updates on the global trade situation or Federal Reserve monetary policy could influence BTC’s trajectory.

- Institutional Interest – Large players may use this dip as a buying opportunity, injecting fresh liquidity into the market.

Conclusion
Bitcoin's 16% crash to 91K reflects a combination of technical breakdowns and macroeconomic pressures. While uncertainty looms, BTC remains a key asset in the crypto ecosystem, with historical recoveries following major dips. As the market navigates trade war fears, investors should remain cautious, keeping an eye on support levels and potential rebounds.