There is a massive wave of sell-offs in the digital asset segment, against which #bitcoin has fallen below the $90,000 mark. At the same time, many major cryptocurrencies are also experiencing significant pressure. In such conditions, fear has taken hold among investors.$BTC
The sentiment index of market participants supports this. Currently, the indicator is at 25%. Such a situation is often observed during periods of significant market fluctuations, after which a recovery phase often occurs.
Several analysts note that the current situation provides opportunities to open long positions at more favorable prices. Technical metrics also indicate that the crypto market is currently heavily oversold. However, there are several factors that may significantly limit the growth of most digital coins.$BNB
Market participants are primarily concerned about the trade confrontation that may occur between the US and several countries. During a recent speech, Donald #TRUMP emphasized his administration's intention to raise tariffs on goods from Canada and Mexico up to 25%.
At the same time, there is also a confrontation between the US and China. The PRC has already taken a number of retaliatory measures to strengthen its position in potential negotiations. In such conditions, the likelihood of inflation rising in the United States is high. Against this backdrop, the chances that the Fed will be ready to lower the key refinancing rate are significantly reduced.
According to specialists from Bank of America, it is not worth expecting a softening of monetary policy in the US this year. Moreover, it cannot be ruled out that the economic situation will not be conducive to this even in 2026. This situation will remain a key factor putting pressure on most digital coins.
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