Here’s a breakdown of the crypto market from last week:
What Just Happened to the Markets 🤯?
Bitcoin rolled over really hard last week, dropping toward the $60K zone, which is more than 50% lower than its all-time high. For crypto traders, that’s a dramatic dip, but market data shows that the week was generally bad for both crypto and traditional markets.
For context, US tech stocks have been under pressure, and when growth assets slide, crypto often follows. Add renewed trade tensions and fresh inflation warnings, including projections that US inflation could push back above 4%, and macro now looks less supportive.
A big part of the initial bullish predictions earlier this year depended on aggressive interest rate cuts from the Federal Reserve and other macro conditions. If inflation increases, those cuts get delayed or downsized. Markets are now anticipating only modest rate reductions, which is rubbing off on crypto and interest in risk assets.
Exchange-traded fund (ETF) flows and positioning made the drop sharper. US-listed Bitcoin ETFs have been experiencing notable outflows. At the same time, leverage got washed off the market. More than $2B in long positions were liquidated in a single session, with another large wave after that. Sentiment has also swung to extreme fear levels that have not been seen since the last major bear market.
Where Do Things Stand Now ⏳?
So far, this looks more like a risk reset than a total dip.
Buyers have shown real interest around the low–mid $60Ks, and BTC got back to around $69K. If the breakout continues, it could enter the low-$70Ks and pick up momentum. However, volume still reflects stress and de-risking more than confident rallies.
The best case from here is a stabilisation move, potentially from a relief bounce, followed by some rebuilding while macro expectations reset. The worst-case scenario is that there’s one more dip before a firmer base forms. Not comfortable, but not unfamiliar either.
For now, it could be a welcome back to the bear market. Good luck and Godspeed!
Disclaimer: This content may cause extreme FOMO (Fear of Missing Out). Side effects of investing include sudden wealth (or, you know, the opposite 😢). Please do your own research (DYOR) or speak to your financial advisor before making any decisions.
