The recent drawdown in Bitcoin below $75,000 and Ethereum under $2,200, is primarily driven by ongoing negative sentiments in the cryptospace 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.

While underlying buying power in the crypto ecosystem remains strong, 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 Lee, Chief Analyst at Bitget

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