The crypto market has been brutal, with extreme volatility, massive liquidations, and worsening sentiment. Lark Davis breaks down the latest crash, what’s causing it, and whether there's light at the end of the tunnel.
Total Crypto Market Collapse: Brutal Sell-Off
Key Highlights:
- The market lost $350 billion in 24 hours, one of the worst single-day drops ever
- Bitcoin remains in a strong downtrend, unable to break above key resistance levels
- Altcoins are getting destroyed, with Ethereum, Solana, and meme coins seeing heavy losses
The Bigger Picture: Global Markets in Chaos
Key Highlights:
- The Volatility Index (VIX) spiked to 69, the highest since the 2020 COVID crash
- Trump’s tariff policies are sending stocks into panic mode, leading to broader risk-off sentiment
- The equity markets are crashing, and crypto is feeling the pain, with no good news able to reverse the trend
Bitcoin Holding Key Support – But for How Long?
Key Highlights:
- Bitcoin has failed multiple breakout attempts, getting rejected at every resistance level
- Until BTC reclaims the 20-day and 50-day EMAs, the market remains bearish
- If Bitcoin loses $75K support, things could get ugly fast
The Trump Crypto Narrative: Can It Save the Market?
Key Highlights:
- Trump’s "Strategic Crypto Reserve" is bullish long-term, but the market is ignoring it short-term
- There are rumors that U.S. capital gains tax on crypto will be eliminated, but Davis warns "no one's gonna have gains left to tax at this rate"
- If Trump successfully forces the Fed to cut rates, liquidity will return, but pain could last for months before that happens
Altcoins in Freefall – Ethereum Underperforms
Key Highlights:
- Ethereum is the worst-performing major asset, failing to hold $2,500 and now hovering near $2,000
- Solana, Cardano, and meme coins are facing massive liquidations, draining liquidity from the entire market
- If ETH drops below $2K, Lark suggests cutting losses, calling it “the most disappointing asset of the cycle”
Final Take: Survive Until Markets Turn
Key Highlights:
- Davis still believes in long-term bullishness, expecting Bitcoin to hit $150K-$250K later this year
- But short-term pain is real, with headline risk, volatility, and downtrends dominating the charts
- Key strategy: Hold cash, avoid overleveraging, and wait for strength to return
Bottom Line: The market is in freefall, and short-term sentiment is horrific. While Davis believes the bull cycle isn’t over, he warns that things could stay irrational for weeks or even months before a true recovery.
