Musk and Trump Clash Sparks Crypto Chaos

The cryptocurrency market has once again been caught in a whirlwind, with recent volatility attributed to an unexpected clash between Elon Musk and Donald Trump. Bitcoin‘s price has settled around $103,000, momentarily stabilizing, yet the future remains unpredictable.

What Are Experts Saying?

The market saw drastic declines in altcoins, with some falling over 5% and even dropping below previous lows. Although Bitcoin holds strong above the six-digit threshold, lesser-known cryptocurrencies within the top 100 are experiencing severe downtrends, reaching unprecedented lows. Ali Martinez pointed to a worrisome 200-day SMA loss as a signal for further Bitcoin selloffs.

Benjamin Cowen expressed concern, noting Bitcoin’s historically poor performance in past third quarters, suggesting that another major downturn might be imminent during the current quarter.

“There is consensus that BTC has surged following the global M2, but why ignore BTC’s performance in the previous third quarters?”

Can Bitcoin and Altcoins Recover?

In contrast to some analysts’ grim predictions, Scott Melker remains hopeful, emphasizing technical indicators that suggest potential rebounds. Melker cites possible benefits from a shoulder drop and a 50MA bounce, advising traders not to panic if Bitcoin’s daily chart stabilizes without filling lower wicks.

Waleed Ahmed also brings optimism, particularly with Fartcoin, which recently broke free from overselling pressures, reclaiming $1. Ahmed believes renewed risk appetitecould favor altcoins, pointing to a target of $1.6 for Fartcoin.

Many agree with TraderSZ’s notion that the Musk-Trump dispute’s impact is overblown. He remarked, acknowledging the conflict as more spectacle than substance:

“Everyone’s excited over known facts about Trump. Elon knew all along and still supported. Now he’s throwing tantrums as things didn’t go his way. Without new revelations, it’s all nonsense.” – TraderSZ

CryptoBullet’s approach remains cautiously optimistic about altcoins, as he stated:

“I retain most long-term positions but won’t add without a clear bullish signal.”

This market turbulence serves as yet another reminder of the cryptocurrency market’s inherent volatility, influenced by both market forces and external events, urging investors to stay vigilant yet hopeful for recovery signs.