The crypto market crawled back today, October 18, as traders bought the recent dip and as hopes of a trade deal between the US and China rose. This article provides predictions of top cryptocurrencies like Zcash (ZEC), Shiba Inu (SHIB), and Morpho (MORPHO).

Zcash price technical analysis

Zcash price has been in the spotlight this month as it surged all of a sudden. It moved from a low of $34 in August and reached a high of $297 last week. 

This surge was triggered by an announcement by Grayscale that it would launch its fund, giving institutional investors a chance to invest in one of the biggest privacy coins in the industry. This fund has already attracted millions of dollars in inflows.

Zcash price then pulled back recently as investors started to book profits and as the crypto market crash happened.

It pulled back to low of $185 on Thursday and then bounced back to the current $220. This price action is a sign that the coin has now moved to the distribution phase of the Wyckoff Theory.

This phase is characterized by volatility, which is happening as evidenced by the soaring Average True Range, which has jumped to the highest point this year. The ATR indicator is the most common volatility indicator.

There are also signs that the Zcash price is slowly forming a double-top pattern, whose upper side will be at $297. 

Therefore, the token will likely rise to the double-top point and then resume the downward trend as it moves to the markdown phase of the Wyckoff Theory.

Shiba Inu price technical analysis 

The daily timeframe chart shows that the SHIB price has crashed in the past few months, moving from a high of $0.00001748 in May to the current $0.00001018.

Shiba Inu price has moved below the 50-day and 100-day Exponential Moving Averages (EMA). It has also settled at the lower side of the descending triangle pattern, which is a common bearish continuation pattern.

SHIB price has moved below the Ichimoku cloud indicator, while the Supetrend indicator has turned red. 

Therefore, because of the descending triangle, the token will likely continue falling as sellers target the next key support level at $0.00000851, its lowest level this month. 

A move below that level will point to more downside, potentially to the key support level at $0.0000075. 

Morpho price forecast 

Morpho is a top player in the crypto industry, where it offers lending solutions to individuals and companies. 

Most of its growth came after integrating with Base and after the adoption by Coinbase, the biggest American crypto exchange. This growth has led to a surge in assets, which peaked at $8.5 billion earlier this month.

Morpho price has jumped as its ecosystem continues growing. The token rose to a high of $1.9, up from this month’s low of $1.0900.

Morpho token has formed an inverse head-and-shoulders pattern, which is a common bullish continuation pattern made up of a head, two shoulders, and a neckline.

The token has also moved above the 38.2% Fibonacci Retracement level at $1.7640. It also rose above the 50-period Exponential Moving Average on the eight-hour chart.

Therefore, the token will likely continue rising as bulls target the initial resistance level at $2. A move above that level will point to more gains to the 61.8% retracement level at $2.2

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Top semiconductor ETFs have rallied in the past few years as the tailwinds in the AI industry continued. The VanEck Semiconductor ETF (SMH) jumped to a high of $348 this month, up by 100% from its lowest point in April. 

Similarly, the iShares Semiconductor ETF (SMH) rose to $292, also up by 95% from its April lows. This surge could continue after Taiwan Semiconductor (TSM) published strong results that demonstrated more demand for chips. 

Taiwan Semiconductor and SML Earnings

The main catalyst for the SOXX and SMH ETFs is the recent Taiwan Semiconductor earnings, which were better than expected. In a statement, the company said that its quarterly profits jumped by 39% in the third quarter. 

The net income soared to $14.8 billion or NT$452.3 billion, higher than the median estimate of NT$405 billion. Most importantly, the company hinted that it would have a 30% increase in revenue. In a note, Bloomberg analysts said:

“This momentum is expected to continue into 4Q, when strong orders for Apple’s A19 and Nvidia’s Blackwell chips should largely offset typical seasonality and tariff-related headwinds.”

Therefore, its strong earnings mean that companies continued placing orders from TSM during the quarter. This is notable because TSM serves the biggest companies in the chip industry, like Nvidia, AMD, Intel, and Qualcomm. It also manufactures custom chips by companies like Apple and Microsoft.

TSM’s results came a day after ASML, another proxy for the chips industry, delivered strong results during the quarter. ASML earnings showed that its bookings jumped to 5.4 billion euros, much higher than the expected 4.9 billion euros. Its sales, however, came in at 7.5 billion euros, slightly lower than the 7.7 billion euros that analysts were expecting.

The company has bounced back after crashing three months ago when the CEO warned of a potential slowdown in the AI industry will slow down because of Donald Trump’s tariffs.

Impact on SOXX and SOXL ETFs

SMH and SOXX ETFs will benefit from the latest results by TSM and ASML because these companies are the top players in the industry. ASML is the only provider of lithography solutions, while TSM is the biggest foundry.

As such, their strong numbers mean that their customers placed more orders in the third quarter. This is highly possible because of the large deals that have been announced recently. 

For example, Nvidia agreed to invest up to $100 billion in OpenAI. In this deal, OpenAI will deploy millions of Nvidia chips in its data centers. 

Additionally, OpenAI has indeed a deal with Oracle and AMD, implying more demand for these solutions. Other chip companies in the SOXX and SMH ETFs that will benefit from these investments are Broadcom, Applied Materials, Lam Research, and Micron. 

Therefore, there are signs that chip companies will publish strong financial results. In September, Micron published strong earnings that demonstrated demand for NAND and DRAM products. 

Analysts expect that Nvidia’s earnings will show that revenues jumped by 55% in the third quarter to $54 billion. They see the guidance for the full year revenues being $206 billion, up by 58% from last year. 

Other chip companies are also expected to publish strong numbers, with AMD’s revenue coming in at $8.74 billion, up by 28% from the same period last year. 

These numbers will help to support the SOXX and SMH ETF stocks in the coming weeks. However, the main risk for the industry is that the AI bubble may burst this year.

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The recent crypto market crash continued today, Oct. 17, as the hangover of last week’s liquidation event continued and as traders booked profits on some of the top weekly gainers. Bitcoin price retreated to $108,000, while the market capitalization of the industry fell by 2.2% in the last 24 hours. 

This article explores some of the top reasons why Bitcoin and altcoins like Bless, Synthentix, Plasma, XRP, and Solana are going down today.

Crypto market crash has coincided with the stock market turmoil

One major reason why the crypto market crash is happening today is that American stocks resumed its downtrend on Thursday, with the Dow Jones and Nasdaq 100 falling by over 0.70%.

Stocks plunged despite the strong earnings by companies like Taiwan Semiconductor and ASML as concerns about regional banks accelerated. Banks like Western Alliance and Zions plunged after reporting some major loan impairments. 

These loans which, were linked to fraud, came a few weeks after the collapse of First Brands, and two years after Silicon Valley Bank and First Republic went under. On the positive side, investors believe that the loans are not systemic, meaning that the industry may rebound.

The crypto market tends to have a close correlation with stocks in some instances. For example, stocks and cryptocurrencies plunged last week after the trade conflict continued.

Cryptocurrencies plunged as the liquidations hangover remained 

The crypto market plunged this week as many investors remained in the sidelines following last week’s crash that led to at least $19 billion in liquidations. A liquidation is a situation where crypto exchanges shut down leveraged trades when they fall below the margin requirements.

Over 1.6 million crypto traders were liquidated on Friday, leading to at least one suicide, which happened in Kyiv, Ukraine. In most cases, cryptocurrencies tend to waver after such a big liquidation event as many traders remain in the sidelines. This situation changes when a prolonged crypto market rally happens.

Profit taking and ETF approval delay 

The other main reason why the crypto market crash is happening is that investors are booking profits in some top gainers in the industry.

A closer look at the top laggards in the industry today were the top gainers during the week. For example, the Bless Network price plunged below $1 on Friday, down by 58% from its highest level this week. Before that, the Bless price was up by almost 1,000% from its lowest point this week.

Synthentix (SNX) token price plunged to $1.40, down by 45% from this week’s high. Like Bless, the SNX price was up by nearly 400% from its monthly low. Some of the other top laggards like Yield Basis, Pump, My Neighbor Alice, and Morpho were some of the top gainers earlier this week.

Additionally, the crypto market crash happened as the government shutdown continued, leading to delays in the approval of popular crypto ETFs like that of Solana and XRP. In this case, the crash also happened as Bitcoin and Ethereum ETF outflows rose, which was a sign of low demand in the market.

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The FTSE 100 Index remained under pressure this week as investors reflected on the latest UK macro data, such as GDP, jobs, and industrial and manufacturing production. It retreated to a low of £9,436, down from the all-time high of £9,575. 

This article explores some of the top FTSE 100 shares to watch next week, including Barclays, Intercontinental Hotel Group (IHG), London Stock Exchange (LSEG), and Unilever.

UK banks like Lloyd’s, Barclays, and NatWest

FTSE 100 Index banks have done well this year, with most of them hovering near their highest level in years. The NatWest share price was trading at 548p on Thursday, a few points below the year-to-date high of 565p.

Lloyds share price was trading at 84.48p, a few points below the year-to-date high of 86.72p, while Barclays was trading at 379p. 

These bank stocks reacted to the earnings season of their peers in the United States, like Goldman Sachs, JPMorgan, Citigroup, and Wells Fargo. Most of these banks reported strong numbers, helped by the resurgent investment banking business.

The three FTSE 100 banks will be in the spotlight as they publish their earnings. Barclays will go first when it publishes its results on October 22. It will be followed by Lloyds on 23rd and NatWest on 24th. HSBC and Standard Chartered Bank will then release their numbers in the following week.

InterContinental Hotels (IHG)

InterContinental Hotels Group, popularly known as IHG, the parent company of brands like Indigo, Crowne Plaza, Holiday Inn, voco, and Six Senses, will be another FTSE 100 Index company to watch as it issues its trading statement on Thursday.

The report comes at a time when the IHG share price has plunged by over 17% from its highest level this year. This retreat happened even as the company continued doing well in the first half of the year.

Its recent results showed that its revenue rose by 6% to $1.17 billion, while its operating profit soared by 13% to $604 million. The company is also returning cash to shareholders, and is on track to pay $1.1 billion this year. Therefore, the upcoming trading statement will provide more color about its business during the third quarter.

London Stock Exchange (LSEG)

The London Stock Exchange will be one of the top FTSE 100 shares to watch next week as it publishes its trading statement. 

This statement comes at a time when the stock is not doing well, with the stock falling by 28% from its highest point this year. Its trading statement also comes after the CEO clarified that it was not for sale even though Euronext has said that it would be willing to buy it.

The most recent earnings showed that the company’s revenue rose by 7.8%, with all its divisions like data & analytics, FTSE Russell, risk intelligence, and markets seeing robust growth. It also had strong margins during the year’s first half.

Unilever 

Unilever, the parent company of brands like Dove, Axe, LUX, Vaseline, Knorr, Sunlight, and OMO, has not done well this year as it remained inside the important resistance and support at 4,820p and 4,353p. 

The stock will likely change this when it publishes its financial results, which will show whether its business continued doing well in the last quarter. 

The most recent numbers showed that its turnover dropped by 3.2% in the first half to 30.1 billion euros, with most of the decline happening in its home care business. Foods and personal care revenue also declined during the period.

The other top FTSE 100 shares to watch will be companies like Spirent Communications, Rentokil Initial, RELX, and Aberdeen Group 

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The crypto market remained under pressure on Friday, with most tokens being in the red. Still, some notable tokens like XPIN Network (XPIN), Boundless (ZKC), and Zora (ZORA) rose, adding millions of dollars in value to their market cap.

XPIN Network price soared amid ecosystem growth 

XPIN Network price went parabolic, moving from a low of $0.0003180 on October 10 to $0.0030 today. It has jumped by over 840% from its lowest level this month. 

This surge has brought its market capitalization to $39 million. Its 24-hour volume was over $173 million, which is a sign of resilient demand among investors. 

The XPIN Network price surge is happening because of the post-airdrop speculation among market participants. It is also happening because of the strong demand among users as the number of dNFTs rose to over 372.18k. 

Total $XPIN deposits have jumped to 2.55 billion, which are equivalent to $6.25 million. The loyalty APR has jumped to 365%, while the flexible APY has moved to 85%.

Still, the main risk for the XPIN Network price is that it has become highly overbought. As a result, the token will likely retreat in the coming days as investors start to book profits. 

Read more: Here’s the top reasons why the crypto market crash is happening today

Boundless jumps as investors buy the dip

Boundless price went parabolic, soaring by over 70% in the last 24 hours. This rebound happened as its 24-hour volume jumped to $237 million and the market cap hit $60 million. 

The ZKC price has jumped by over 150% from its lowest point this year. It remains about 70% below the highest point this year.

Boundless, which is backed by top players like Figment Capital, Bain Capital, Delphi Ventures, and Galaxy, jumped as investors bought the dip following its post airdrop crash. 

There was no immediate news that triggered the jump. The most recent Boundless news was the team’s response to concerns shared by DAXA and Upbit about its tokenomics. DAXA is a consortium of the biggest South Korean exchanges, with its members including Bithumb, Upbit, Coinone, and Gopax. 

Boundless community:

We want to update you on our response to DAXA’s October 2, 2025 notice.

Thank you for your patience. The Foundation has been working diligently to provide a fulsome response to DAXA. The Foundation continues to be committed to transparency, integrity and…

— Boundless (@boundless_xyz) October 5, 2025

DAXA was concerned about its tokenomics, which the team has tweaked. Specifically, it reduced the ecosystem fund to 23.25% from the previous 31%. 

Boundless crypto price is also rising as investors buy the post airdrop dip. However, like XPIN, there is a risk that this surge will be brief.

Zora price rebounds after Upbit listing

Zora token has rebounded in the past few weeks, moving from a low of $0.0413 in October to $0.1018 today. This rebound has happened because of the popularity of Base Blockchain tokens. 

Zora price jumped as the volume soared by 52% to over $264 million. This surge brought its market capitalization to over $454 million.

The ongoing rebound is happening as hopes that it will be listed on Binance, the biggest crypto exchange in the industry. These hipes rose after Coinbase announced its BNB token listing, leading to hopes that Binance would list tokens in Coinbase’s ecosystem.

Zora also jumped after being listed on Upbit, the biggest crypto exchange in South Korea. Data shows that its 24-hour volume on Upbit jumped to over $34 million. It is common for tokens to jump after being listed on top exchanges. 

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The Turkish lira continued its slow downtrend and reached its all-time low as traders waited for the upcoming interest rate decision. The USD/TRY exchange rate rose to 41.94, up by almost 20% from its lowest point this year. It has soared by over 450% in the last five years.

Why the Turkish lira is crashing

The Turkish lira has been in a strong downtrend for decades because of the lack of independence of the central bank. Unlike in other countries, the Turkish president has the power to hire and fire the central bank at will, a role that Erdogan has used well in the past few years.

Forex analysts believe that the central bank has allowed the currency to fall as long as the decline is lower than the inflation rate. 

There is a belief that a weaker lira is good for the economy as it makes its goods cheaper to other countries. Also, a weaker currency is good for the tourism industry as many foreigners, especially in locations and hotels that accept local currency.

Analysts believe that the Turkish lira will continue its freefall as it has done in the past decades. In a statement, a senior portfolio advisor at East Capital Group said:

“We believe the central bank will aim to maintain the link between the pace of inflation and the lira’s depreciation. This should result in a relatively predictable and consistent depreciation path, implying high but gradually declining real returns.”

CBRT interest rate decision ahead

The next key catalyst for the Turkish lira will be the upcoming interest rate decision by the Central Bank of the Republic of Turkey (CBRT), which will happen on Thursday next week.

This will be a closely-watched interest rate decision as it comes after a recent report by the central bank noted that inflation was still high.

The headline Consumer Price Index (CPI) rose to 33.29% in September, much higher than what most analysts were expecting. This surge happened as food, housing, and education costs continued rising.

On the positive side, the inflation surge may have been temporary as September coincided with the reopening of tertiary institutions, a period when prices typically rise.

Still, analysts believe that CBRT will opt to slow down the pace of interest rate cuts. It slashed rates by 250 basis points in September after slashing by 300 basis points in July. The expectation is that it will cut rates from 40.5% to 39.5% in the upcoming meeting.

USD/TRY technical analysis 

USD/TRY chart | Source: TradingView

The weekly chart shows that the USD/TRY exchange rate has been in a strong uptrend for a long time. Most recently, it has jumped in all weeks since March.

As a result, the pair has remained much higher than all moving averages, while the Relative Strength Index has remained above the overbought level since May 2022.

Therefore, the most likely scenario is where the pair continues rising as bulls target the next key resistance level at 42. A move above that resistance level will point to more gains, potentially to 45 in 2026.

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The DAX Index has remained in a tight range in the past few weeks as the recent bull run faded. It was trading at €23,766, down a bit from the year-to-date high of €24,635. It has jumped by 30% from its lowest point this year. 

This article explores some of the best DAX Index constituents to watch next week, including popular names like SAP, BASF, Linde, Beirsdorf, and Porsche. 

SAP 

SAP share price has plunged by over 18% from its highest point this year as it continues to underperform other top software companies like Microsoft and Salesforce. 

The stock also dropped after becoming a target of an investigation by European regulators, who cited its anticompetitive practices. If found guilty, the company could be fined up to 10% of its global sales. 

EU officials allege that SAP may have used improper business strategies to prevent other companies from competing in the industry. SAP has already offered concessions to regulators. 

The most recent results showed that the company’s business did well in the last quarter. Its cloud backlog jumped by 22% to €18.1 billion, while its cloud and ERP revenues jumped by 24% and 30%. Its total revenue rose by 9% in the second quarter.

SAP has also continued to repurchase its stock as part of the €5 billion program that ends in December. The management will likely announce a new authorization when it publishes its results on Tuesday.

Read more: SAP brings OpenAI to German public sector via Delos Cloud

BASF 

BASF, the biggest chemical company in the world, has plunged by almost 20% from its highest level this week. This decline happened partly because of Donald Trump’s tariffs and the weakness in its key markets like Europe, China, and the US.

The most recent results showed that the company’s revenue dropped to €33.2 billion in the first half of the year from €33.7 billion in the same period last year.

The company’s profitability also weakened during the period as the EBITDA dropped to €4.4 billion from €4.7 billion in the same period last year. Most importantly, the company suffered a cash outflow of €1.3 billion.

BASF also lowered its forward guidance for the year. It now expects that the EBITDA will be between €7.3 and€7.7 billion. Therefore, the upcoming results will provide more color on the company’s performance and whether the turnaround efforts are working.

Porsche 

Porsche share price has crashed this year and is now down by 32% from its highest level this year. It has also dropped by over 13% from its highest level in September.

The company has plunged because of its slowing sales in key markets in Europe and Asia. It is also the most exposed company in the United States because of Donald Trump’s tariffs as it has no manufacturing plants there. Also, the US has become its fastest-growing market, meaning that tariffs could slow this momentum.

The company has announced a series of measures to boost its growth, including slowing the pace of electric vehicle rollout. Therefore, its results on Friday will show whether its strategy is working out well.

The other three DAX Index companies to watch will be Linde, Beiersdorf, and MTU Aero Engines. MTU Aero will be notable as the stock is about 50% above the year-to-date low and the civil aviation industry is doing well.

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Ferrari stock price has crashed into a bear market this year after plunging by over 25% from its highest point in July. RACE was trading at $392, lowering its market capitalization to $94 billion, down from $124 billion in March. This article explores the top reasons why the stock has dropped recently. 

Ferrari stock has crashed because of Donald Trump’s tariffs

One reason why the Ferrari share price has crashed this year is because of Donald Trump’s tariffs. Like Porsche, Ferrari is highly exposed because it does all its manufacturing in Italy, and the US is one of its biggest markets. It made 993 million in the Americas, which includes the US.

Trump has put in place a 15% tariff, a move that has pushed the company to increase prices by up to 10% on some models to offset the tariff costs. It is likely that the company’s sales will be hurt in the US in the coming quarters.

Slowing growth to continue, as showed by its 2030 strategic plan

The other main reason why the Ferrari stock price has plunged is that analysts expect that its business will deteriorate for a while. 

In its most recent results, the company said that its revenue rose by 4% to 1.78 billion euros, while its operating profit jumped by 8% to 552 million euros. The net profit rose by 3% to 425 million euros. 

Analysts expect that the company’s growth trajectory will fade this year. The average estimate is that its revenue will be 1.71 billion euros in the current quarter, up by 3.8% from the same period last year. Also, the annual revenue is expected to be 7.1 billion euros. 

At the same time, the company published a weaker-than-expected strategic plan for 2030. It plans to have 40% ICE by 2030, 40% hybrid, and 20% electric. Before the strategic statement, the company hoped to have EVs make about 40% of its sales.

Also, the company hopes to have 90,000 active clients, up by 20% from 2022. This target was lower than what analysts were expecting.

Valuation reset is going on

Ferrari stock price has also dipped as it goes through a valuation reset. At its peak, the company had a market capitalization of over $124.98 billion, which was much higher than its peers and it real fundamentals. It had a price-to-earnings ratio of 60, a high premium for a company with single-digit growth rate. 

The ongoing crash is part of the valuation reset, which has brought its price-to-earnings ratio to 37. It is common for highly valued companies to drop as its valuation moves to the ideal location. 

This crash has also coincided with the falling value of some of its vehicles such as the Purosangue and SF90 Stradale.

Ferrari stock price technical analysis

RACE stock chart | Source: TradingView

The daily timeframe chart shows that the RACE stock price also plunged after finding a strong barrier at around $505. It formed a giant triple-top pattern on that level and has now settled at its neckline.

The stock has now formed a death cross pattern, which happens when the 50-day and 200-day Exponential Moving Averages (EMA) cross each other. Therefore, the most likely scenario is where the stock continues falling as sellers target the psychological point at $350. 

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The S&P 500, Dow Jones, and Nasdaq 100 indices and their exchange-traded funds (ETF) future continued their strong downward trend on Friday. Futures tied to the three indices fell by 60, 275, and 265 points, respectively. 

This crash is a continuation of what happened on Thursday when they plunged by 0.63%, 0.65%, and 0.50%. Here are some of the top reasons why the indices are falling and whether it is safe to buy the dip. 

Stock market has crashed as regional banks tumble

The first main reason why the S&P 500, Dow Jones, and the Nasdaq 100 indices is the rising concerns about regional banks and the credit market.

Fears of the credit market have been going on for a while as the private credit sector has boomed. Data shows that over $1.5 trillion has moved to private credit sector, a figure that is expected to hit $3 trillion in the next few years. 

Fears of the credit sector have continued after the recent collapse of First Brands, which had over $12 billion in borrowings. 

The fears continued this week after Zions Bank and Western Alliance announced that they were victims of fraud. As a result, there are concerns that the industry could be in more trouble. 

These concerns have sent memories of 2023 when companies like First Republic and Silicon Valley Bank (SVB) crashed. This explains why the short interest in the SPDR S&P Regional Bank ETF has jumped to 30%.

Still, on the positive side, the two companies have cited fraud as the main reason for their woes, meaning that this is not a systemic issue. 

Government shutdown continues

The S&P 500, Dow Jones, and Nasdaq 100 indices have also fallen as concerns about the government shutdown continues. The Senate failed in its bid to have it open, meaning that the shutdown will likely go on for a while. 

This shutdown will have an impact on the US economy, with estimates suggesting that it is costing the GDP over $70 billion a week. 

Still, on the positive side, the longer the shutdown continues will raise the odds of the Federal Reserve cutting interest rates in the coming meetings.

US and China trade war

The other notable bearish catalyst for the three indices is that there is still a risk that the US-China trade conflict will go on for a while. 

China announced tariffs targeting US ship earlier this week. This was on top of the other retaliatory measures it announced last week. They included tariffs on US ships moving to China, limits to rare earth materials, and an investigation into Qualcomm.

Why the Dow Jones, S&P 500, and Nasdaq 100 will rebound

There are a few reasons why the three indices will bounce back after this crash ends. First, they will rebound as the issues in the regional banking sector are not systemic. 

Second, American companies have published strong financial results so far. This includes numbers by companies like JPMorgan, Morgan Stanley, Citigroup, and Wells Fargo. Analysts expect the earnings season will be better-than-expected.

Third, bond yield are falling, signaling that market participants expect the Fed to cut interest rates in the coming meetings. The stock market does well when the bank is cutting rates.

Additionally, history shows that the stock market normally bounces back after experiencing a drawdown. 

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The crypto market crash that started on Friday accelerated this week, with top coins being in the red. Bittensor (TAO) price plunged by 14%, while Aster, Immutable, Zcash, PancakeSwap, and DoubleZero being the top laggards. This article explains some of the top reasons why the crypto crash is happening.

Crypto market crash happened after last week’s liquidations 

The crypto market crash is happening as stocks jump as investors focus on last week’s liquidations. On Friday, over 1.6 million traders were liquidated, with the total amount rising to almost $20 billion. 

Some analysts, including Tom Lee, argue that the liquidation amount was much higher than the reported figure and pointed to the risk of leverage in the crypto industry.

Therefore, altcoins are falling as investors and traders keep off after the crash last week. Some people who were wiped out have opted to keep off the industry completely or to participate in it by just buying and holding Bitcoin.

This explains why liquidations have slowed despite the ongoing crash. CoinGlass data shows that liquidations dropped by 28% in the last 24 hours to $444 million. Also, the volume in the perpetual exchanges like Aster and Hyperliquid has dropped.

Altcoins falling as Fear and Greed Index retreats 

The other main catalyst for the ongoing crypto market crash is that investors have embraced a sense of fear. The Crypto Fear and Greed Index has plunged to the fear zone of 32, much higher than this month’s high of 55. 

This index looks at the overall sentiment in the crypto industry, including the market sentiment, price momentum, derivatives market, and volatility has plunged.

The fear is also happening in the broader market. Data compiled by CNN Money shows that the Fear and Greed Index has dropped to the fear zone of 30, with the stock price breadth, market volatility, junk bond demand, and safe-haven demand moving to the extreme fear zone. 

Put and call options and stock price strength have all moved to the neutral zone. Historically, the stock and crypto market normally underperforms when there is a sense of fear in the market.

Trade jitters and Federal Reserve impact

The crypto market crash is happening as investors focus on the ongoing trade issues between the United States and China. Recently, China has started to push back harder against the United States.

The country has rejected American soybeans, while announcing an investigation into Qualcomm, initiated export controls of rare earth metals, and warned of retaliation against any actions by the United States. 

All this will have an impact on inflation in the United States at a time when the Federal Reserve is thinking of cutting interest rates. Analysts expect that the Fed will cut rates in the coming meetings. 

Therefore, the trade jitters and inflation worries mean that the Fed will not cut rates at a faster pace as expected. 

Will crypto prices go back up?

Now, with the crypto market crash accelerating, the question is whether the prices will bounce back. History shows that crypto prices tend to bounce back after crashing in a certain period. 

For example, Bitcoin and the cryptocurrency market plunged after the tariff announcement on Liberation Day in April this year. A month later, the Bitcoin price rebounded and hit a new all-time high. 

Similarly, cryptocurrencies plunged at the onset of the Covid-19 pandemic and then staged one of the longest rallies after that. 

Additionally, there are potential catalysts in the crypto industry, including the upcoming altcoin ETF approvals, potential interest rate cuts, and buying the dip. 

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