Father of Market

🔵 Everyone knows that buying and selling are the main reasons, but you might not know that there are political and other factors that have fueled the crypto market crash, causing altcoins to plummet to new lows and prices from which they haven't recovered.

🔴 The 10/10 crash isn't listed as a cause, but it's related to them.

1️⃣ US Tariffs

Since Donald Trump took office as President of the United States, we've seen him declare a trade war, which caused Bitcoin and global markets to crash in 2025. However, the crisis continues to this day, putting pressure on crypto markets. Everyone assumes it's due to China or other countries. When the United States imposes tariffs on other countries, those countries are harmed, inflation rises, prices increase, and the cost of living becomes more difficult. This puts crypto traders in a state of extreme panic, buying or selling based on certain news that creates intense pressure that no one can resist. Therefore, they resort to selling cryptocurrencies and converting to fiat currency. But the main reason here is the current trade war between China and the United States. In 2026, the problem between the United States and Europe escalated when the US president sought to acquire Greenland from Denmark. This led to tensions between Europe and America, and the issue was further raised at their recent meeting in Davos. While Europe refused to sell Greenland, it allowed the United States to use it. This appeared to resolve the issue somewhat, but in reality, it wasn't truly resolved because America wanted to annex it. This situation suggests a potential conflict between Europe and its ally, America.

2️⃣ Lack of Liquidity in Crypto Markets

Everyone witnessed the collapse of Bitcoin from $120,000 to $80,000 in a short period after the October 10th crash. The worst was on October 10th, but the problem is that most of the cryptocurrencies that had reached peaks are now forming new lows. This has exacerbated the situation. We also saw Michael, the founder of MicroStrategy, stop buying Bitcoin. MicroStrategy was a major factor in Bitcoin's rise to $120,000. Currently, we see how liquidity is extremely low, and many projects have announced their exit from the crypto market. KDA was the first to announce its exit due to bankruptcy, and more projects are expected to follow. The meme coin market has seen a decline in activity, and most meme coins that formed peaks are now close to their previous lows. We also shouldn't forget that most projects under the ETH framework have reached new lows. Projects on the BTC network have also disappeared. Despite this, the market is still relying solely on altcoins that had sufficient liquidity. There haven't been any new projects since 2025 or earlier. 2024 was a period of stability, with some altcoins, and Bitcoin being the most prominent, experiencing a drop from $97,800 to $86,000 during that week. This was due to the possibility of a war between Iran, Israel, and the United States. This occurred just one day before the markets opened, leading to this decline, and we don't know when the war might take place.

3️⃣ Platform Hacks and the Theft of $1.5 Billion in Ethereum

Everyone knows that the Bybit platform was hacked in 2025. This happened at the beginning of the first quarter of the year, and it led to a drop in most cryptocurrencies instead of an increase. We saw how the market collapsed abnormally. This was a major setback, as liquidity was scarce after the hack due to the fear of such a platform being breached. However, the opposite happened. Trading platforms like Binance and others stepped in to provide full support to the platform, and everything was fine. But after Bitcoin reached $123,000 and then crashed in a single day, there was no buying liquidity at that time. This led to pressure on the markets, and they were unable to correct.

4️⃣ The US Government Shutdown

One of the strongest reasons traders were forced to sell cryptocurrencies just to survive was the US government shutdown. With no government salaries or income, everyone was in a state of extreme panic. Some even sold gold and other valuables. As the government shutdown continued for 43 days, crypto markets in the US and globally suffered even more. Currently, there are rumors of another government shutdown, which could mean we might see Bitcoin return to the $70,000-$90,000 price range. If this happens again, we can expect some projects to declare bankruptcy, others to be placed under review on Binance, and many more to be removed from Binance US.

5️⃣ Gold and War Metals in the Middle East

Everyone knows that Bitcoin is digital gold, but real gold has seen a remarkable rise since 2023. However, everyone also knows that the rise in gold and other metals is decreasing the value of cryptocurrencies. This is causing a liquidity shortage. Currently, when gold rises, Bitcoin falls, and vice versa. Everyone remembers when gold fell sharply; liquidity usually flowed into cryptocurrencies. But currently, Bitcoin is under significant pressure due to gold. The price of an ounce of gold has reached $5110 on trading platforms, which is putting pressure on Bitcoin and reducing market liquidity. However, the war in the Middle East could be a contributing factor to the rise in gold prices. There is a high probability of conflict between Iran, Israel, and the United States over the construction of nuclear reactors and the US's refusal to allow them to be built. This would harm all the Gulf states in the Middle East due to the inherent danger. If this conflict were to occur, we might see gold rise to $6000 per ounce in the second quarter of 2020, but currently, everything is uncertain and not yet confirmed.

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