The crypto market has wiped out over $730 billion in value in just 100 days, one of the sharpest short-term collapses on record. We're seeing massive capital flight accelerating, fueling a deep contraction across the entire crypto economy.
Bitcoin (#BTC) is gradually climbing, showing a clear shift in market structure. As anticipated, the price is now working to hold and sustain above this key level. Momentum looks solid so far, with a near-term target in the $71,250–$71,450 zone. A short term rally in altcoins is also expected to follow.
JUST IN: 🇺🇲The U.S. has mobilized its most significant military presence in the Middle East since the 2003 Iraq invasion. Bloomberg reports. Military action could unfold after market close today or over the weekend, which was often the pattern during the Trump presidency. Be cautious. It may be wiser not to carry large open positions into the weekend.
A lot of people are complaining really hard, and are even depressed when it comes to crypto. Here, I highlighted some of the reasons the crypto market is making some people depressed.
- Trading volumes for altcoins have plummeted by 50%.
- Assets under management in spot Bitcoin ETFs have decreased by $60 billion.
- Half of the entire Bitcoin supply is currently held at a loss.
- Bitcoin has seen 11 straight days of intense selling pressure.
- Open interest in crypto futures has crashed by $140 billion, a 60% drop from its high.
- Bitcoin investors have locked in $2.3 billion in realized losses over the past week.
- Growth in stablecoin market capitalization has flatlined, indicating a reduction in available cash on the sidelines.
- Bitcoin miners are depleting their reserves amid rising operational costs.
- Funding rates on key exchanges have stayed in negative territory.
- This marks only the second instance in Bitcoin's history of five consecutive months with negative returns.
- Bitcoin has lingered in a capitulation phase (Z-score below -3) for five months.
- The Fear & Greed Index has remained in "Extreme Fear" territory (below 20) for 20 days, the second-longest such period on record.
- Even long-term holders are starting to sell off their positions at a loss.
- Net inflows of Bitcoin to exchanges are increasing, suggesting more selling activity.
- On-chain metrics like active addresses and transaction counts are on a downward trajectory.
- Investment in crypto startups via venture capital has dropped sharply compared to last year.
BUT REMEMBER - THIS TOO SHALL PASS
Crypto winters have always been brutal... and they've always ended with stronger recoveries. Extreme fear has historically been one of the best contrarian buy signals. Protect your mental health: step away from charts if needed, avoid leverage right now, zoom out to the long term, and only risk what you can afford to hold through the storm.
When Bitcoin dropped toward $70,000, trading jumped but it was a panic reaction, not people buying with confidence ⚠️.
The excitement disappeared quickly, showing that while people were watching, they weren’t ready to keep buying at those prices 📊.
Right now, there aren't enough buyers to soak up the amount of Bitcoin being sold 🔴.
The activity we see is just short-term traders moving money around or people getting forced out of their positions, not long term investors moving in 💰.
Because there isn't steady buying support, the price is still "shaky" and could easily drop again 📉. Without consistent trading volume, the market can't find its footing 📈⏸️.