Bitcoin (BTC) and Ethereum (ETH) have encountered intense selling pressure as anxiety envelops not only the cryptocurrency market but also U.S. equities. The whole crypto arena has struggled amidst adverse macroeconomic conditions, leaving investors unsure of the next significant move.
Concerns over a global trade conflict and unpredictable policy shifts from U.S. President Trump’s administration have intensified volatility and uncertainty, crafting a challenging environment for investors. Consequently, the U.S. stock market has plummeted to its lowest points since September 2024, pulling crypto prices down in tandem with conventional assets. With no evident reprieve forthcoming, traders remain apprehensive as both stocks and crypto strive to maintain crucial support thresholds.
Essential on-chain indicators from CryptoQuant indicate that open interest in Bitcoin and Ethereum futures has decreased considerably, signifying a noticeable change in investor outlook and speculative behavior. The drop in open positions implies that traders are withdrawing from the market due to liquidations or risk aversion, contributing to the ambiguity surrounding Bitcoin’s and Ethereum’s pricing movements.
With markets facing pressure, the upcoming days will be pivotal in assessing whether BTC and ETH can rebound or if additional declines are imminent.
Bitcoin Falls 19% As Anxiety Escalates
Bitcoin has declined by more than 19% since early March, with fear and uncertainty prevailing in market sentiment. Numerous investors now perceive the bull market as concluded as BTC struggles to regain critical levels and pessimistic sentiment sets new downward targets. As selling pressure rises, traders are meticulously monitoring whether Bitcoin can stabilize or if further losses are forthcoming.
Since the U.S. elections in November 2024, macroeconomic volatility and uncertainty have influenced the market. Heightened fears of a trade war, erratic policy adjustments, and global economic instability have all played a part in the persistent weakness across risk assets, including cryptocurrencies and U.S. stocks. Given that these circumstances are expected to endure, Bitcoin remains exposed to more price fluctuations.
Top analyst Axel Adler shared observations on X, indicating that the considerable decline in open interest in Bitcoin and Ethereum futures points to a significant alteration in investor mood and speculative actions. Traders are liquidating their positions amid increasing uncertainty. Adler notes that open interest in BTC futures has decreased by $668 million, while ETH futures have experienced a drop of $700 million. Altogether, positions valued at $1.368 billion have been closed across both instruments.
Adler remarks that this wave of liquidations signifies a partial market reset, as leveraged traders withdraw from the market. While this might indicate diminished speculative pressure, Bitcoin still needs to reclaim essential levels before any potential recovery can occur.
BTC Under Pressure Below Critical Moving Averages
Currently, Bitcoin is trading at $81,500, having lost the 200-day Moving Average (MA) and Exponential Moving Average (EMA) in the $85,000–$82,000 range. This breakdown has positioned BTC in a weaker stance, raising the probability of further declines unless bulls can regain essential resistance levels.
For a rebound to gain traction, bulls must firmly hold above the $80,000 support threshold and push back over $85,000. A robust move beyond this area could indicate the onset of a recovery, yet market circumstances remain uncertain, making the pace of any rebound highly unpredictable. Without a decisive upward push, BTC could stay ensnared in a consolidation phase, struggling to find a direction.
Nonetheless, breaching the $80,000–$78,000 range would expose Bitcoin to additional declines, with forthcoming key support levels positioned at $75,000 and potentially even $69,000. If bears maintain dominance, BTC may undergo another wave of selling pressure, postponing any recovery aspirations. The next few days will be vital in determining if Bitcoin can stabilize or if further downturns are on the horizon.
Featured image from Dall-E, chart from TradingView
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