The cryptocurrency market experienced a sharp sell-off today, but analysts say the decline is more related to global economic uncertainty than problems within the crypto sector itself. Dr. Kirill Kretov, a senior automation expert at CoinPanel, cited a combination of macroeconomic tensions as the primary driver behind the recent decline. “We are in a period of escalating tariff conflicts, increasing geopolitical hot spots, conflicting macro signals, and increasing global uncertainty,” Kretov said. “These factors are converging. In this environment, investors are withdrawing from risky assets and turning to safer assets such as US Treasuries and gold. Cryptocurrencies, especially altcoins, are bearing the brunt of this pressure.” Related News: Stern Warnings from Wall Street CEOs About the US Economy Keep Coming: Now JPMorgan CEO Warns Despite the pullback, some analysts believe a short-term recovery could be on the horizon. Oversold market conditions could lead to a temporary recovery starting midweek, according to Chu, an analyst at BRN. “Since risk assets are oversold in the short term, a short-term relief could be seen in the next day or two,” Chu said. “With the release of the FOMC meeting minutes on Wednesday, the US CPI and initial jobless claims on Thursday, and the PPI and University of Michigan consumer sentiment data on Friday, the market could see a ‘dead cat bounce’ that will last at least a few weeks and could start on Wednesday.” *This is not investment advice. Continue Reading: When Will Bitcoin and Altcoins Recover? Analyst Gives Date for Relief: “Dead Cat Bounce…”
