Bitcoin and altcoins are declining as the recent crypto crash persists. BTC, which soared to a record high of $111,900 last week, has dropped to $107,000, its lowest level since May 25.
Most altcoins have also dropped, with some of the recent top losers like Monero, Hyperliquid, Virtuals Protocol, and Fartcoin falling by over 10% in the last 24 hours.
Futures open interest crashed by 2.2% in the last 24 hours to $156 billion, while the 24-hour liquidation stood at over $230 million.
The ongoing crypto crash coincided with the sell-off in the stock market as the Dow Jones and Nasdaq 100 fell by 245 and 100 points, respectively.
Crypto Crash Continued After FOMC Minutes
One reason why Bitcoin and other altcoins crashed on Wednesday is that the Federal Reserve published hawkish minutes. Officials noted that they will not be in a hurry to cut interest rates, saying:
“Participants agreed that with economic growth and the labor market still solid and current monetary policy moderately restrictive, the committee was well positioned to wait for more clarity on the outlooks for inflation and economic activity.”
Therefore, analysts expect that higher interest rates are here to stay, with many of them anticipating that the bank will cut rates either in September or November.
Crypto prices tend to perform well when the Federal Reserve signals that it will reduce interest rates, as it did in December 2022, leading to a strong bull run.
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Trade Risks Remain
The crypto crash happened after hopes of a swift trade deal between the US and the European Union faded. An FT report noted that Brussels believed that Trump was not interested in a fair deal. Instead, he wants the bloc to capitulate on key issues, such as VAT or technology regulations.
As such, there is a likelihood that Donald Trump will go ahead with his 50% tariff on EU goods in July. Such a move would lead to substantial volatility in the stock and crypto markets, as the two regions trade worth over $1.65 trillion annually.
Profit Taking Among Investors
The crypto market crash also happened as investors took profits following the recent surge. Bitcoin was up by 50% from its lowest point in April and its highest level this month. Other coins like Monero and HYPE were up by triple digits.
It is common for Bitcoin and other altcoins to drop after hitting a key milestone. For example, Bitcoin price jumped to a record high of $109,350 in January and then plunged to $74,500 in April. Before that, it hit a record high of $73,480 in March 2024 and then bottomed at $49,970 in August.
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Is this the End of the Crypto Bull Run?
Therefore, a common query on Google is whether the crypto bull run has ended. Chances are that this is not the end of the bull run, and instead, is a minor retracement.
Bitcoin, which often influences the broader altcoin industry, has strong fundamentals. ETF demand keeps rising, and more companies are considering investing in Bitcoin. At the same time, the Bitcoin supply continues to fall, with that in centralized exchanges plunging to the lowest level in seven years.
