Crypto Markets at a Crossroads as Bitcoin Slides to $75,000

Bitcoin and the crypto markets have to digest a sobering weekend. The price decline of the last few days continues, with Bitcoin down to around $75,000. Ethereum, Solana, and XRP are losing dramatically

Sentiment in the crypto markets is at rock bottom

Over the past five days, Bitcoin’s price has plummeted from $88,000 to $75,000, reaching levels last seen in November 2024. Back then, Donald Trump had just emerged victorious from the US presidential election, and $75,000 represented an all-time high for Bitcoin. This time, however, Bitcoin’s price level suggests the risk of further losses, and Ethereum, XRP (Ripple), and Solana have also slipped into critical price zones. How dire is the situation on the crypto markets, and what led to this?

Bitcoin had already fallen back to $82,000 on Friday . US President Trump openly threatened Iran with military force, and the nomination of the next head of the Federal Reserve was pending. Trump ultimately chose Kevin Warsh, considered a “hawk.”

With Warsh at the helm of the Fed, the days of the central bank printing money may be over

Capital is already turning away from risky asset classes like Bitcoin and others. Ethereum ‘s price plummeted by 23 percent this week to around $2,200. Solana’s losses have reached 18 percent, and current prices around $100 represent a significant directional indicator. XRP (Ripple) is faring no better, with a 16 percent weekly decline and a current price of approximately $1.50.

But it wasn’t just leading cryptocurrencies that were hit hard. Silver fell from record prices of over $115 on Thursday to $75 per troy ounce, while gold dropped from $5,400 to $4,500. Investors currently see neither precious metals nor Bitcoin as a “safe haven,” and the dollar is gaining in attractiveness due to the prospect of Warsh becoming Fed chairman.

Over the weekend, further factors dampened Bitcoin’s sentiment. The end of the month approached the crypto futures markets, leading to increased trading activity, where bears prevailed, profiting from falling prices. Bitcoin, Ethereum, XRP, and Solana experienced this firsthand as downward spirals ensued in the crypto markets.

Conclusion: Bitcoin price decline critical – is a “crypto markets winter” imminent?

Observers are reminded of Bitcoin’s downward spiral by long periods of stagnation, such as after the bankruptcy of the cryptocurrency exchange FTX and the collapse of the LUNA ecosystem in 2022. These periods, in which a trend reversal is slow in coming, are called “crypto markets winters.” Pessimists fear further losses for Bitcoin, with $70,000 potentially acting as a support level.

Ethereum, XRP, and Solana, like other popular altcoins, are not showing any independent momentum but are instead mirroring Bitcoin’s performance. Optimists, on the other hand, hope that the recent slump in the crypto markets is “only” a temporary dip and that Bitcoin will recover quickly. However, there is general agreement on one point: the situation on teh crypto markets appears critical, and Bitcoin and its related cryptocurrencies are approaching a turning point in the short and medium term.

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(Featured image by Yiğit Ali Atasoy via Unsplash)

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