Geopolitical Tensions Trigger Crypto Sell-Off

The cryptocurrency market shed 【$3.34 trillion】 in valuation this Wednesday, marking a 2.6% decline as stalled US-China trade negotiations sparked risk aversion. Bitcoin's 2% drop to $104,600 ignited cascading sell-offs across major altcoins, with Ether and Solana losing 4-5% respectively. ——This marks the sharpest single-day decline since May 10—— when markets peaked at overbought RSI levels.

Futures Market Carnage Amplifies Losses

Derivatives traders faced 【$683.4 million】 in liquidations, with long positions accounting for 90% of the wipeout. Data from CoinGlass reveals Bitcoin futures led with 【$211 million】 evaporated, creating a self-reinforcing downward spiral. Interestingly, the $617.85 million long liquidation volume suggests leveraged bulls accelerated the downturn.

Technical Breakdown Threatens Further Declines

The TOTAL market cap chart shows a critical breach below the 【$3.35 trillion】 support level, mirroring February's 26% collapse pattern. Market technicians warn the next support at 【$3.22 trillion】 could determine whether the slide extends to 【$3.1 trillion】. Notably, Dogecoin's 9% plunge outpaced major assets, highlighting speculative positions unwinding fastest.

Trade Talk Stalemate Shakes Investor Confidence

US Treasury Secretary Bessent's admission that negotiations "stalled" without presidential intervention triggered the sell-off. ——The lack of progress suggests prolonged geopolitical friction——, particularly damaging for Bitcoin's narrative as an inflation hedge. Remarkably, the downturn began during New York trading hours, contrasting with Asia-led rallies earlier this month.

As of press time, the market shows tentative stabilization near February's trendline. However, with the RSI still descending from 79 to 52, technical analysts caution against premature buying. The crypto sector now faces its first major stress test since April's rally, with macroeconomic headwinds replacing earlier euphoria.