While crypto enthusiasts have been riding high on Bitcoin’s stellar performance this year, the party hit a serious speed bump this week. Bitcoin plunged to $82,028, shedding 3.57% in just 24 hours as trading volume surged to $27.06 billion. The flagship cryptocurrency took a nosedive from $85,500 to $82,300 on major exchanges. Not a great look.
This 4% decline from the daily high has positioned Bitcoin below its 200-day exponential moving average. Technical analysis shows Bitcoin struggling against a descending trendline, with potential support lurking at $76,700. The CME gap between $84,435 and $85,000? Filled. Ascending channel pattern? Under serious pressure.
The ripple effects hit altcoins hard. Ethereum tumbled to $1,837, down 7.77% over seven days. XRP and DOGE weren’t spared either, dropping over 6.5% in a day. SOL, BNB, and ADA all took 5% hits. The cryptocurrency market has seen its total market cap fall below $2.5 trillion amid the widespread selloff. The real bloodbath happened with coins like CRV, BONK, and TIA – nearly 10% losses. S (Sonic) led the losers’ parade with a brutal 13% decline.
So what’s behind this mess? Macroeconomic uncertainty has investors spooked. Regulatory pressures in the U.S. and Europe aren’t helping. Mass liquidations of long positions and institutional profit-taking after March’s all-time high added fuel to the fire. The shift in market sentiment highlights how quickly crypto prices can respond to perceived threats. The Crypto Fear & Greed Index tells the story – plummeting from 72 to 48. That’s investor sentiment shifting from “let’s get rich” to “um, maybe not today.”
Global economic jitters are everywhere. Inflation concerns, interest rate fears, and upcoming tariffs against Mexico, Canada, and China have markets on edge. The macro liquidity backdrop remains neutral, with only marginal decreases in interest rates failing to stimulate investor appetite for risk. The U.S. stock market is turning lower, and the VIX shows broader market unease.
Analysts are split on what happens next. Some see a potential rally around May 1, while others warn of correction below $74,000. Long-term fundamentals remain intact, but right now? It’s crypto chaos, pure and simple.
