A sharp sell‑off in precious metals markets triggered a wider market downturn, hitting risk assets across equities and crypto. Silver dropped sharply, followed by gold, which helped spark broader declines in major Asian indices and pressure on cryptocurrencies, with both Bitcoin and Ether retreating amid the volatility.
Bitcoin (BTC) is trading below US$80,000, (US$78,579 at the time of writing) continuing a broader slump that has dominated digital assets over recent sessions. Short‑term moves show BTC weakening as risk‑off sentiment persists. BTC’s declines have been mirrored by other major coins, with Ethereum and altcoins also under pressure.
Analysts cited cascading sell‑offs and deleveraging as key drivers of the recent contraction, with margin calls and reduced liquidity amplifying downside pressure across markets.
Ryan Lee, Chief Analyst at Bitget, believes that the sharp drop in Bitcoin and Ethereum is primarily driven by ongoing negative sentiments in the crypto space followed by the pullbacks in gold and precious metals as a classic correction.
“The ongoing uncertainty from the new Fed chair, and broader macro liquidity concerns, marks this as a deleveraging event amplified by a macro shock rather than a structural shift,” he added.
Ryan pointed out that the buying power in the crypto ecosystem still remains strong. He, however, warns that short-term risks from cascading liquidations could exacerbate volatility, emphasizing the need for resilient infrastructure and risk management to foster sustainable industry growth.
“For Bitcoin, I anticipate short-term oscillations between $70,000-$80,000 with potential downside spikes due to thin liquidity, while Ethereum may range widely from $1,800-$2,600. Stabilization could be confirmed by a rebound in the Fear & Greed Index above 40 and reduced liquidation volumes, whereas further downside might be signaled by persistent outflows from spot ETFs,” Ryan added.
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