Original author: BitpushNews Mary Liu
Cryptocurrency markets fell slightly on Tuesday after U.S. President Donald Trump announced a 25% tariff on imported steel and aluminum.
According to Bitpush data, Bitcoin fell 1.63% in the past 24 hours and is currently trading below $96,000, while Ethereum fell 2.12% to around $2,600. XRP and Solana (SOL) did not fluctuate much.
In the past 24 hours, the total market value of cryptocurrencies fell by 0.98% to $3.15 trillion. CoinGlass data shows that during the same period, the total amount of liquidation in the entire crypto network reached $233 million, mainly long orders, equivalent to about $149 million.
Trump tariffs and macroeconomic uncertainty
Tracy Jin, vice president of cryptocurrency exchange MEXC, attributed the markets movement primarily to the Federal Reserves recent decision to keep interest rates unchanged and broader macroeconomic concerns. In uncertain times, investors tend to seek safer assets, such as gold or the U.S. dollar, which is usually accompanied by a decline in interest in risky assets (including cryptocurrencies).
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said in a note on Tuesday that history shows trade war fears sparked by tariff threats tend to come and go quickly, but this time around, smart money isnt so sure; currency, bond and commodity traders are hedging their bets, with the dollar, Treasury yields and gold prices rising as tensions heat up.
Joel Kruger, currency strategist at LMAX Group, believes this is more about the market getting reacquainted with Trumps tactics rather than any substantive risk associated with extreme tariff measures.
Joel Kruger believes: While the new announcement may bring short-term volatility, we do not believe this risk will cause any major turmoil, and expect crypto assets to continue to be well supported by medium- and long-term players looking to buy on dips.
The $92,000 support level is key
Checkonchain data shows that the market value to realized value ratio (MVRV) of short-term holders (STH) has dropped to 1.05.
MVRV is a key indicator of the profitability of Bitcoin holders. When MVRV is above 1, it indicates that investors are still profitable; below 1 means that investors are losing money. The current MVRV has dropped to 1.05, indicating that the profit margins of short-term holders are shrinking. If MVRV drops further, it may put more pressure on Bitcoin prices because it means that more short-term holders are close to the break-even point.
Currently, MVRV is still above 1, indicating that short-term holders are not selling significantly. However, it is important to focus on the cost basis of short-term holders, which is around $92,000. This price is a key support level for Bitcoin prices, reflecting the average cost of short-term investors to buy BTC. If the price of Bitcoin falls to $92,000, it may trigger more selling as short-term holders may choose to stop losses and exit. If this support level is broken, market sentiment may deteriorate further, causing prices to fall faster.
In addition to the MVRV indicator, liquidity areas are areas where a large number of orders are concentrated, which usually act as support or resistance. Bitcoin has recently hit lows several times to absorb liquidity, and the current price is hovering below $94,000, which is also an important liquidity area. If this pattern continues, Bitcoin may further drop to $92,000. If this key support level cannot be maintained, selling by short-term holders may increase downward pressure.
