This week, the cryptocurrency market saw significant unrest, paralleling the turbulence experienced in mid-2024. Bitcoin‘s price hovered around $62,500 — marking a 14.5% decline since Monday’s opening. Meanwhile, Ether faced a steeper plunge, dropping over 17%, with a 5.5% decrease noted just on Friday.
What is causing the pressure on Bitcoin and Ether?
Bitcoin and Ether are grappling with sustained pressure. Ethereum, notorious for its volatility, hit lows unseen since April 2025, teetering close to the critical $1,420 mark previously associated with a notable bounce. The specter of Ether dipping below this threshold raises concerns of deeper declines potentially nearing bear market levels of sub-$900 from 2022.
An atmosphere of apprehension extended beyond these giants, sweeping across alternative cryptocurrencies. Zcash, for instance, plummeted over 30% in value following the disclosure of a potential exploit in its shielded pool technology by a cybersecurity researcher. This flaw, if exploited, could lead to an unchecked creation of tokens.
“The downturn this week stems from a capital migration post the AI-based IPOs in the U.S.,” stated Michael Saylor, Chairman of Strategy Management.
How do the data reflect decreasing demand?
Market indicators reveal a declining interest in crypto investments. April’s spot trading volume plunged to $679 billion, the lowest since late 2023, as noted by CryptoQuant. Concurrently, Bitcoin’s derivatives market cakewalk displayed bearish signals. Open interest decreased by 15% to $17 billion, highlighting a sharp exit from leveraged trades.
In the options arena, a surge in protective strategies was evident. Recent activity saw a parity in put and call operations, with a notable rise in the 25 delta skew from 13 to 27 percent, indicative of heightened demand for defense against losses. Additionally, DVOL rose to 47, forecasting increased volatility.
The recent tumult resulted in substantial liquidations amounting to $1.2 billion, as noted by Coinglass. Long positions represented a staggering 76% of these liquidations. Bitcoin’s share of this involved $364 million, whereas Ether accounted for $291 million, highlighting key thresholds for further downturns.
Several cryptocurrencies, previously stable, were affected by these waves of apprehension. Zcash suffered further when BitMEX’s founder, Arthur Hayes, disclosed his company’s complete divestment from ZEC. Cardano saw a drop exceeding 10%, compounded by internal concerns voiced by founder Charles Hoskinson.
Despite these setbacks, there are faint signs of recovery for alternative coins. Many cryptocurrencies’ relative strength index (RSI) has dropped into oversold territory, suggesting a possible brief rebound. However, market sentiment remains shrouded in skepticism.
