The cryptocurrency market is going through a phase of rapid cooling, and the Bitcoin price, in line with our yesterday’s forecasts, dropped to around USD 69,000. This dynamic decline, reinforced by geopolitical uncertainty and macroeconomic data from the US, is a key test of endurance for investors before the next stage of the bull market.
Implementation of the downside scenario and the power of market psychology
The last hours on the crypto market were marked by high volatility, which led to the implementation of the scenario predicted for several days. Bitcoin, which recently aspired to break further records, dropped to the area of USD 69,000. From a technical analysis perspective, this level is of fundamental importance because it represents a retest of a former historical high. Analysts point out that this price behavior is a natural element of a healthy growth cycle, allowing the market to be “cleared” of excessively leveraged long positions.
Data from liquidation maps suggest that the market has been highly overleveraged recently. Many investors, hoping for uninterrupted growth, opened risky positions, which became an easy target for larger players and stock exchange algorithms. The current calming of moods, although painful for portfolios in the short term, may build a more solid base for future growth.
Macroeconomic landscape and political pressures in the US
The situation on the charts does not come from a vacuum, and the events in Washington currently have a significant impact on the valuation of digital assets. Even though Donald Trump ended the weekend government shutdown, financial markets are still feeling anxious. An additional factor is the return of the debate on the Clarity Act. Representatives of the Democratic Party plan to hold talks on this topic again, which in the long term may bring the desired regulatory clarity for stock exchanges and mining companies, but in the short term it introduces a dose of uncertainty.
At the same time, key data from the American labor market arrived. A reading of 22,000 new jobs, compared to forecasts of 46,000, suggests a clear slowdown in the US economy. This state of affairs is a signal to the Federal Reserve that it may be necessary to cut interest rates more quickly. Despite this, FedWatch Tool analytical tools estimate the chance of a cut in March at only 15.9%, which prevents investors from being hurray optimistic.
Geopolitics hits tech giants and Ethereum
The tense situation between the US and Iran is also important. The breakdown of nuclear talks caused an immediate reaction on traditional stock exchanges, where technology companies such as Nvidia, AMD and Meta were hit hard. In the face of global military risk, capital often flees from risky assets, which also hit the crypto sector.
Ethereum was particularly hard hit, with its price falling below $2,100 for the first time since May 2025. Market data suggests that if support is not maintained, the next stop for the second largest cryptocurrency may be the USD 1,800 region. Interestingly, huge volatility was also recorded in precious metals, where silver experienced a spectacular, almost 40% decline in one day, which shows that the current nervousness applies to almost all asset classes.
Despite the red color on most charts, there are projects that break the trend. An example is the Hyperliquid ecosystem, which, thanks to the introduction of predictive markets and dynamic development, has recorded an increase of approximately 85% in the last two weeks. This shows that even during corrections, Web3 technology leaders can attract capital.
The article does not constitute investment advice.
