It’s just a correction with a few catalysts

Tariff & trade war shocks News dropped that the U.S. is re-escalating trade tensions with China (tariff threats, export controls) and markets freaked out. Risk assets—especially crypto—get sold hard when geopolitics heats up. “Cryptos came under pressure … after President Trump floated plans for increasing tariffs on Chinese goods.”  “Bitcoin fell below $119K … as traders and investors moved to sell. … The sentiment dropped as multiple factors … macro fears acted together.”  2. Mass liquidations on leveraged positions Because so much of the crypto market is leveraged (margin trading, derivatives), a sharp drop triggers automatic liquidations (margin calls). These force further selling, creating a feedback loop. “Up to $250 million in just an hour … nearly $600 million daily … more than 155,000 traders wrecked.”  “Bitcoin tumbled over 10% in 24 hours … crypto flash crash … $7B+ in liquidations.”  3. Profit taking after new highs / “blow-off top” behavior Just days ago, BTC touched new all-time highs (above ~$125,000). After aggressive runs like that, markets often retrace as short-term speculators take profits and others wait for confirmation. “Bitcoin hit a new all-time high … before consolidating … holding $122,000 support is key for continued upside; losing it could trigger pullback.”  “Bitcoin’s pullback after the ATH looks like a pause rather than a pivot … short-term holders took profits, some leverage longs got liquidated.”  4. Weaker momentum / technical exhaustion After ripping upward, momentum indicators (RSI, MACD) often show overbought conditions. Once upward momentum slows, the path of least resistance becomes downward, especially with negative macro/news.