Crypto markets continued their downward trajectory as a significant correction intensified, driven by thin liquidity, rising geopolitical tensions, and a wider risk-off sentiment permeating global markets. The leading cryptocurrency dipped under the crucial $75,000 mark, reaching its lowest point since April 9 of the previous year, while Ethereum remained around $2,200 as a surge of liquidations impacted leveraged positions during the low-liquidity trading over the weekend. Analysts pointed to a mix of macroeconomic uncertainty, declining global risk sentiment, and notable institutional outflows from US spot Bitcoin ETFs as the reasons behind the sell-off. Geopolitical concerns have intensified, as noted, with reports of an explosion at Iran’s Bandar Abbas port and rising fears of a potential US–Iran escalation. This has led to a flight to safety, impacting risk assets, including cryptocurrencies.
“Markets reacted negatively to US President Trump’s nomination of Kevin Warsh as the next Federal Reserve chair, a perceived hawk expected to favour tighter monetary policy.” The action sparked a surge in the US dollar while triggering sell-offs in risk assets, notably in the crypto space. “Simultaneously, geopolitical tensions, reports of an explosion at Iran’s Bandar Abbas port, and concerns over a possible US–Iran escalation triggered a broader flight to safety, further weighing on digital assets,” said Riya Sehgal. In line with prevailing sentiments, Akshat Siddhant stated, “Recent outflows of over $1.4 billion from Bitcoin ETFs have further added to selling pressure, while the weekend volatility triggered nearly $2.6 billion in liquidations, effectively clearing excessive leverage from the system.” This reset enhances the market structure. Importantly, institutional conviction remains strong, with Strategy indicating additional Bitcoin accumulation ahead. Siddhant, however, anticipates a resurgence in sentiment as US equity markets commence trading today.
In the midst of market fluctuations, Bitcoin, the leading digital token, momentarily dipped under the $75,000 mark, hitting $74,551, before bouncing back to trade above $76,000. As of the latest update, the cryptocurrency is priced at $76,180, reflecting a decline of 3.45 percent in the last 24 hours, with trading volumes reported at $62.08 billion, based on data. The digital token has experienced significant volatility, trading between $74,551.33 and $79,142.52 over the past 24 hours. From a technical perspective, Bitcoin, as noted by Sehgal, encounters resistance in the range of $80,000–$82,000, while downside targets are positioned around $72,000–$70,000. Siddhant, on the other hand, asserts that with BTC currently hovering around $76,600, it encounters resistance at $85,500, and a decisive break could pave the way toward $90,000. The sell-off was notably more pronounced in Ethereum. As of the latest update, ETH was experiencing a decline of 8.24 percent, priced at $2,247.57, alongside a 24-hour trading volume of $48 billion, according to data. The price has experienced a range between $2,166 and $2,448 in the last 24 hours. ETH is still more than 54 percent below its all-time high of $4,953, which was reached on August 5 of the previous year, as reported. Analysts, on the other hand, continue to express caution regarding Ethereum’s future prospects. “ETH faces selling pressure below $2,500, risking a retest of $2,000,” stated Sehgal.
The bearish sentiment also permeated the altcoin market. XRP, Solana, and BNB are currently experiencing declines, trading lower by 5.17 per cent, 4.57 per cent, and 3.76 per cent, respectively. Among others, CMC20, HYPE, and Cardano were experiencing declines of 4.49 percent, 2.52 percent, and 3.65 percent, respectively. Analysts believe that until macro stability returns and ETF inflows resume, crypto markets are likely to remain defensive. Market participants might anticipate volatile consolidation or additional declines prior to the onset of a lasting recovery.