{"id":25883,"date":"2026-01-20T08:28:22","date_gmt":"2026-01-20T08:28:22","guid":{"rendered":"https:\/\/investx.fr\/en\/?p=25883"},"modified":"2026-01-20T08:28:24","modified_gmt":"2026-01-20T08:28:24","slug":"understanding-crypto-markets-drop-today-key-factors-explained","status":"publish","type":"post","link":"https:\/\/preprod.investx.fr\/en\/crypto-news\/understanding-crypto-markets-drop-today-key-factors-explained\/","title":{"rendered":"Understanding the crypto market’s drop today: Key factors explained"},"content":{"rendered":"\n

Trade War and Macro Shock Hit Bitcoin<\/h2>\n\n\n\n

The current Bitcoin<\/a><\/strong> decline stems from a political<\/strong> catalyst. Donald Trump’s announcement of 10% tariffs<\/strong> on European imports, with a threat to increase them to 25%<\/strong>, has reignited trade tensions between the United States and the European Union.<\/p>\n\n\n\n

Historically, this type of conflict strengthens the US dollar (DXY)<\/strong>. An inverse correlation persists with cryptocurrencies<\/strong>. When the dollar strengthens, Bitcoin<\/a> and risk assets face increased selling pressure<\/strong>.<\/p>\n\n\n\n

Faced with this geopolitical uncertainty, institutional investors<\/strong> are reducing their exposure. This capital rotation was enough to break several technical support<\/strong> levels, ending the recovery attempt observed at the start of the week.<\/p>\n\n\n\n

\"Total<\/figure>\n\n\n\n

BTC: Healthy Correction or Warning Signal?<\/h2>\n\n\n\n

From a technical perspective, BTC<\/strong> has been rejected below its key resistance levels and is sliding toward lower liquidity<\/strong> zones. If the current support gives way, a deeper retracement<\/strong> remains possible, testing the market’s strength.<\/p>\n\n\n\n

Trading volumes<\/strong> will be decisive. A lack of buyer demand would confirm that whales<\/strong> are waiting for lower levels to reposition themselves, while the February 1st<\/strong> date maintains a climate of uncertainty.<\/p>\n\n\n\n

At this stage, the decline remains compatible with a classic macro correction<\/strong>. However, as long as the political rhetoric and DXY trajectory do not stabilize, volatility should remain elevated. For investors, caution prevails: it is better to wait for a clear stabilization signal<\/strong> before attempting to buy the dip.<\/p>\n\n\n\n

\"Bitcoin<\/figure>\n\n\n\n

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