Bitcoin, Ethereum and other major cryptocurrencies have extended their sharp decline, with market watchers cautioning that the turbulence may not be over yet.
Bitcoin, the world’s largest cryptocurrency by market value, fell to as low as $73,112 on Tuesday before staging a modest rebound. Over the past seven days, the asset has shed nearly 16 per cent of its value and now trades more than 40 per cent below its all-time high of $126,080 recorded in October.
Ethereum has fared even worse. The second-largest digital currency has slumped 26 per cent in a week to around $2,184, a steep drop from the record $4,946 it reached last year.
Market analysts say the current weakness could trigger another wave of selling if key price levels fail to hold, deepening fears of a prolonged downturn in the digital asset space.
Bearish signals intensify
Bitcoin is now trading well below the levels seen when pro-cryptocurrency U.S. President Donald Trump took office in January 2025, and has also revisited price territory last tested during the announcement of his trade tariffs in April of that year.
Although the cryptocurrency hit a record high in October, a massive selloff — triggered by what was described as the largest liquidation event in crypto market history — has continued to weigh heavily on prices, with recovery proving elusive.
Matt Howells-Barby, Vice President of Growth at Kraken, warned that Bitcoin could face additional downside if it fails to regain momentum above $74,500.
“Holding levels between $77,000 and $79,000 will be crucial in the short term, as a retest of recent lows would be a very bearish signal for the market,” he said.
He added that a fall below Bitcoin’s previous 2021 peak of $69,000 could intensify selling pressure, potentially dragging the asset down toward $54,000.
Similarly, Alex Thorn, Head of Firmwide Research at Galaxy Digital, noted in a recent market update that Bitcoin could trade between $56,000 and $58,000 over the coming weeks and months if current conditions persist.
Some see room for recovery
Despite the gloomy outlook, some industry observers argue that the downturn may not be as severe as in previous cycles.
Bitwise Chief Investment Officer Matt Hougan said retail investors have effectively been in a “crypto winter” since January 2025, but strong institutional participation has helped cushion the broader market — particularly through the growth of digital asset treasuries. He expressed optimism that prices could begin to recover in the near term.
Laurens Fraussen, a research analyst at Kaiko, also suggested that while a bear market could linger for another six to nine months, it may prove less damaging than past downturns, citing improved regulatory clarity as a supportive factor. In earlier bear cycles, Bitcoin has fallen as much as 80 per cent from its peak.
Meanwhile, blockchain analytics firm CryptoQuant advised investors to monitor exchange flows closely during periods of stress. In a recent note, the firm said that despite current volatility, on-chain data show relatively stable exchange reserves and limited net outflows — a sign that panic-driven withdrawals remain contained for now.
