Analysts caution that near-term uncertainty persists due to derivatives expiries, macroeconomic risks, and continued correlation with broader risk assets
Strength spilled into the altcoin complex, where Cardano, Solana, BNB, XRP, and Hyperliquid advanced as much as 8 per cent
Globally, investor sentiment has shifted to extreme fear, leading to reduced risk appetite and capital rotation into safer assets such as precious metals, says Gracy Chen, CEO, Bitget
Broader market stability, analysts said, is likely to hinge on easing macro headwinds and a rebound in capital flows, conditions that remain elusive in the current environment
The sell-off in crypto markets, analysts said, was driven by global risk-off sentiment following Trump's tariff announcement
Commenting on the ongoing volatility in Bitcoin, Eric acknowledged the sharp price swings but remained optimistic about its long-term potential
Glassnode's latest weekly on-chain assessment places Bitcoin well below its estimated 'true market mean' near $79,000
The flagship token briefly slipped below $68,000 before recovering to $68,500, maintaining a sideways range between $65,000 and $70,000 over the past ten days
A strong recovery in Bitcoin above $70,000, analysts believe, could help restore broader market confidence, while failure to hold current supports may trigger another wave of risk-off sentiment
Extreme volatility is nothing new to cryptocurrencies, but Bitcoin's slump from a peak of $126,000 in October last year comes despite the backdrop of a crypto-friendly White House and surging adoption
Crypto markets have remained under pressure since October last year, after Bitcoin scaled its peak and has since been on a declining trajectory
Altcoins followed a similar risk-off trajectory. Ethereum, BNB and Solana reflected weaker bid depth during the pullback
Until macro stability returns and ETF inflows resume, crypto markets, analysts believe, are likely to remain defensive
Bitcoin slipped below the $80,000 mark after failing to hold above $89,000, with the decline exacerbated by thin weekend liquidity
Macro conditions also weighed on sentiment. Analysts noted that risk appetite softened across global markets as investors reassessed the outlook for monetary easing
The downturn followed broader weakness in global equities after renewed trade tensions between the US and Europe, triggered by President Donald Trump's latest tariff threats
The rally, analysts said, appears driven by spot accumulation and improving risk appetite, with on-chain data showing liquidations of short positions as Bitcoin moved above key resistance levels
Overall, muted capital inflows, analysts said, are likely to keep ETH range-bound, while Bitcoin's relative strength continues to support broader sentiment, though there is no clear breakout signal
Investing systematically can help investors benefit from volatility rather than be overwhelmed by it
After testing the $94,000-$95,000 zone earlier in the week, BTC retraced and briefly dipped below $90,000 before stabilising near the mid-$90,000 levels