The recent crypto crash continued today, July 29, as concerns about trade and the Federal Reserve rose. They also plunged after Galaxy Digital, one of the biggest players in the crypto industry, dumped Bitcoin worth billions of dollars. This crash led to a 94% surge in liquidations.
Bitcoin price remained steady at $118,000 during the ongoing crypto market crash. On the other hand, crypto tokens like Fartcoin, Jupiter, Dogwifhat, Worldcoin, Floki, and Sky have crashed by over 9% in the last 24 hours.
At the same time, crypto liquidations jumped by 94% in the last 24 hours to $451 million. Over 156,000 traders were liquidated in this period.
Crypto crash happened after the EU and US trade deal
One of the reasons behind the ongoing crypto crash is the recent US-EU trade deal announced on Monday. Donald Trump and Ursula von der Leyen said that the EU would accept a 15% tariff, much lower than the 30% that Trump had threatened.
The EU also pledged to buy more American energy and weapons in a bid to bridge the trade deficit. The challenge, however, is that the purchases will need to be made by individual countries, rather than the entire bloc.
Also, there are concerns on whether American companies will be able to produce that oil in the first place.
Therefore, the crypto crash occurred due to the rising fear that the 15% tariff has become the new floor that all countries will need to pay. Also, there are concerns about the implications of this deal on the economy, which explains why the euro crashed.
Galaxy Digital Bitcoin dump
The other reason for the ongoing crypto crash is the recent Bitcoin dump by Galaxy Digital. It sold 80,000 coins worth $9 billion in what it described as an estate planning strategy.
Galaxy Digital, which Michael Novogratz runs, also moved tokens worth over $447 million in the last 24 hours.
On the positive side, there are signs that the demand for Bitcoin and Ethereum remains high. For example, SoSoValue data shows that spot Bitcoin ETFs added over $154 million in assets on Monday, bringing the cumulative total to $55 billion.
Spot Ethereum ETFs added over $65 million, bringing the total to $9.4 billion. All Ethereum ETFs now hold over $21.5 billion in assets under management.
Federal Reserve decision and earnings ahead
The third reason for the crypto crash is that investors are awaiting the Federal Reserve’s interest rate decision on Wednesday.
There is a chance that the bank will continue defying Donald Trump, who has called for interest rate cuts. It will leave rates unchanged between 4.25% and 4.50% in this meeting.
Officials will also maintain a wait-and-see as they observe the impact of tariffs on the economy. Such a move will be bearish for cryptocurrencies, which thrive when the Fed is dovish.
The crypto market is also crashing as investors wait for top corporate earnings in the US. Over 50% of all companies in the S&P 500 Index will publish their results this week. This includes crypto companies like Coinbase and Robinhood.
Further crypto are going down because of the ongoing Bitcoin consolidation. It has remained at $118,000 in the past few weeks. Historically, altcoins jump when Bitcoin is rising and fall when it is either falling or consolidating.
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