The cryptocurrency market experienced a sharp downturn on Friday, with profit-taking accelerating and concerns about global trade and the Federal Reserve driving volatility. Bitcoin (BTC) price fell below its recent record high of $111,900, dropping to around $105,500. Other major altcoins like PancakeSwap (CAKE), Raydium (RAY), Ethena (ENA), and Arbitrum (ARB) also witnessed significant losses, down over 10%. This market sell-off triggered a substantial wave of liquidations across the crypto ecosystem. Data from CoinGlass reveals that trading volume saw an alarming surge in just 24 hours, with liquidations jumping by 125% to reach $709 million, affecting nearly 224,000 traders. The largest individual loss came in at nearly $13 million. This crash comes as Bitcoin’s price retreats after a strong rally that pushed it towards its record high last week. The drop is not surprising, with Bitcoin’s typical pullback following significant gains. The crypto market decline coincided with concerns surrounding trade, particularly after a court ruling deemed Trump’s tariffs illegal. A second legal ruling allowed these tariffs to continue as the administration appeals the decision, prompting uncertainty in the market. Additionally, there are growing expectations for interest rates to remain steady at 4.50%, according to Federal Reserve minutes released this week. The Fed is cautiously observing the impact of trade-related inflation and its effect on the economy. It’s important to note that while many investors may have withdrawn from the market, technical analysis suggests that the bull run in cryptocurrency may be far from over. Analysts point to a cup and handle pattern in Bitcoin price action, as well as a bullish flag pattern, both of which indicate potential for a breakout. The growing demand for cryptocurrencies, with ETF inflows exceeding $45 billion and more companies integrating it into their treasury reserves, also contributes to optimism about the market’s future.