The major crypto assets experienced further declines after a multi-day slump on Friday, leading to liquidations exceeding $700 million due to global turmoil and a weak U.S. jobs report.
Bitcoin, which approached $120K at the start of the week, has since fallen to $114K, a decrease of around 5.6%.
Ethereum was quicker to capitulate in the second half of the week, dropping from $4,000 on Sunday to $3.5K, representing a 10% reduction.
The epicenter of the correction has hurt more than 160,930 over-leveraged traders. The total liquidated positions reached $708 million, with over $600 million in long positions. All these factors, along with ongoing global circumstances, contribute to the recent downturn in crypto prices.
The U.S. Bureau of Labor Statistics released the jobs report, which, in its unprecedented manner, led to the firing of the official responsible for the release just hours after its publication. The White House imposed a new wave of sweeping tariffs on nearly every country, causing fear in both on- and off-chain markets.
Trump stated that he has ordered multiple nuclear submarines to approach Russian waters, increasing selling pressure. Analysts said that Bitcoin’s price is expected to continue declining, potentially dropping to around $80,000 before rebounding in Q4, during August and September.
Glassnode analysts speculated last week that Bitcoin’s price surge could potentially lead to a drop below $110,000, triggering an acceleration of selloffs, which would normally lead to a surge. Let’s recall that during the start of the Trump tariff saga, Bitcoin plummeted from around $100K to $75K.
The entire crypto market experienced a blood bath, losing nearly $500 billion. Bitcoin had nearly recovered to $119,000 after the Fed’s decision to keep interest rates unchanged, but then lost over $4,000, dropping to $114K
The most recent reading of the Crypto Fear & Greed Index (CFGI) has fallen to 55, signaling a noticeable shift in market sentiment from highly optimistic to more cautious. The index reflects a more risk-averse attitude among market participants by combining metrics such as trading volume, price volatility, social media activity, and Bitcoin dominance.
Trump’s calls for lower interest rates have not affected the Fed’s target range, which remains between 4 and 5 percent.
Two Fed officials, Christopher Waller and Michelle Bowman, dissented and called for modest rate cuts, but most of the committee stayed firm. Powell’s term as chair ends in May 2026, after which Trump could nominate a successor confirmed by the Senate.
The appointment of a new Fed Chair will be a key moment in the ongoing saga between Trump and the Federal Reserve.
The president has not yet revealed his preferred candidate, but there is speculation that he may name a future chair to replace Kugler. Besides setting monetary policy in a rapidly changing economic environment, the new Chair will have to manage the complex relationship between the White House and the central bank.