Crypto portfolios just took a gut punch. Bitcoin briefly crashed below $73,000 on Tuesday, hitting $72,900—its lowest point since November 2024—before clawing back to around $75,658. That 6% intraday nosedive wiped out another chunk of what’s already been a brutal year, with Bitcoin now down 16% year-to-date. If you’re feeling like you’re watching your digital gold turn to digital dust, you’re not alone.
Bears Circle as Technical Levels Crumble
Funding rates hit extreme zones while support levels that seemed solid start looking like mirages.
The technical picture looks about as appetizing as gas station sushi. Funding rates on Binance entered what analysts call an “extreme zone,” signaling traders are piling into short positions faster than people abandoning Twitter for BlueSky. Key resistance now sits at $74,000, while support hovers somewhere between $69,000 and $72,800—levels that feel as reliable as a crypto influencer’s price predictions. Volatility is spiking after a year of relative calm, because apparently the market decided boring was overrated.
Altcoins Get Demolished in Sympathy Sell-Off
Ethereum and XRP investors discover that diversification doesn’t work when everything moves in lockstep.
While Bitcoin nurses a 4% daily bruise, altcoins are getting absolutely demolished. Ethereum dropped 25% over the past week, with XRP down 17%—proving once again that “altcoin season” often means “altcoin suffering season.” The carnage stems from a perfect storm of geopolitical jitters, the U.S. government shutdown scrambling economic data releases, and regulatory uncertainty that has investors fleeing anything riskier than Treasury bills.
Experts Split on Whether This Is Bottom or Beginning
Analysts offer conflicting views on whether fundamentals can overcome technical breakdown.
Rob Hadick from Dragonfly Capital argues the pullback “doesn’t appear driven by any single factor” and points to strong fundamentals from stablecoins and tokenized assets. Meanwhile, Alex Thorn at Galaxy Digital warns Bitcoin “may continue to drift lower” toward the 200-week moving average near $58,000. That’s a 20% drop from current levels—the kind of distance that separates hopeful hodlers from actual capitulation. With supply gaps gaping between $70,000-$80,000, this correction might have more room to run than anyone wants to admit.
