Crypto Slides as Risk-Off Wave Pushes Bitcoin Below $75,000
The cryptocurrency markets experienced a further downturn as a pronounced correction intensified, influenced by limited liquidity, rising geopolitical tensions, and a general risk-averse sentiment permeating global markets. The flagship digital asset declined beneath the critical $75,000 threshold, 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 amid a weekend characterized by low liquidity. Analysts linked the sell-off to a confluence of macroeconomic uncertainty, deteriorating global risk sentiment, and notable institutional outflows from US spot Bitcoin ETFs. Geopolitical concerns have intensified, as noted, with reports of an explosion at Iran’s Bandar Abbas port and apprehensions regarding a potential US–Iran escalation driving a flight to safety. This situation has exerted pressure on risk assets, including cryptocurrencies.
Markets exhibited a negative response to US President Trump’s nomination of Kevin Warsh as the next Federal Reserve chair, a figure regarded as a hawk anticipated to advocate for tighter monetary policy. The action stimulated an increase in the value of the US dollar while prompting declines in risk assets, such as cryptocurrencies. 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, according to Riya Sehgal. In alignment with prevailing sentiments, Akshat Siddhant, lead quant analyst at Mudrex, remarked, “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. Institutional conviction remains robust, with Strategy indicating additional Bitcoin accumulation. Siddhant, however, anticipates a resurgence in sentiment with the opening of US equity markets for trading today.
In this context, the digital token Bitcoin experienced a temporary decline, dipping below the $75,000 threshold to $74,551, before rebounding to trade above $76,000. At the most recent observation, the cryptocurrency was valued at $76,180, reflecting a decline of 3.45 percent over the preceding 24 hours, accompanied by trading volumes amounting to $62.08 billion, as per data. The digital token has experienced a considerable range of fluctuation, oscillating between $74,551.33 and $79,142.52 over the past 24 hours. From a technical standpoint, Bitcoin faces resistance at $80,000–$82,000, with downside targets near $72,000–$70,000, as noted by Sehgal. Siddhant posits that at the present level of approximately $76,600, BTC encounters resistance at $85,500, and a definitive breach could pave the way toward $90,000. Ethereum exhibits subpar performance, while altcoins trend downward. The sell-off was more pronounced in Ethereum. At the most recent observation, ETH exhibited a decline of 8.24 percent, priced at $2,247.57, accompanied by a 24-hour trading volume of $48 billion, according to data. It has oscillated between $2,166 and $2,448 in the last 24 hours. ETH continues to be more than 54 percent below its peak of $4,953, which was reached on August 5 of the previous year, as reported.
Analysts, in contrast, maintain a more cautious perspective on Ethereum’s outlook. “ETH faces selling pressure below $2,500, risking a retest of $2,000,” stated Sehgal. The adverse sentiment permeated the altcoin sector as well. Among other popular cryptocurrencies, XRP was trading lower by 5.17 per cent, Solana by 4.57 per cent, and BNB by 3.76 per cent, respectively. Among others, CMC20 was showing a loss of 4.49 per cent, HYPE a decline of 2.52 per cent, and Cardano a decrease of 3.65 per cent, respectively. Analysts suggest that until macro stability is restored and ETF inflows recommence, the crypto markets are expected to maintain a defensive posture. Market participants might anticipate volatile consolidation or additional declines prior to the onset of a durable recovery.
