Cryptocurrency Market: Bitcoin and Ethereum Are Declining: What Are the Reasons?

Crypto Market Downtrend Accelerates

In the last 24 hours, the total value of the global cryptocurrency market has decreased by approximately 8.3%, falling to 2 trillion 870 billion dollars, including Bitcoin.

The largest cryptocurrency by market value, Bitcoin, has lost more than 9% of its value during this period, trading at 83,243 dollars, the lowest level since April 2025.

With this decline, Bitcoin's weekly loss has reached around 14%.

Bitcoin had previously dropped to 74,400 dollars. This decline occurred following the decision of U.S. President Donald Trump regarding customs duties.

Ethereum Declines

The second-largest cryptocurrency by market value, Ethereum, has also dropped more than 10%, with its price falling to 2,717 dollars.

Uncertainty Continues to Have an Impact

Expert analysts point out that concerns over interest rates, the unwinding of leveraged positions, and profit realizations are driving investors away from the crypto markets. Analysts emphasize that investors find themselves in an environment filled with uncertainty regarding monetary policy and that concerns over the high valuations of technology companies have negatively impacted investments.

The sharp decline experienced last month created a crisis of confidence in the market, leading to panic selling, and the drop in liquidity caused price volatility. Expectations that the U.S. Federal Reserve will not loosen monetary policy in the short term, macroeconomic uncertainties, institutional outflows, and profit realizations have triggered sales.

Investor Psychology

The fluctuations in Bitcoin's price below the 100,000 dollar level are having a significant psychological effect on investors. Recently observed high valuations and declines in technology stocks have reduced investors' risk appetite.

The waves of selling in the crypto market have led to over 19 billion dollars in liquidations last month, causing the total value of the market, including Bitcoin, to drop by over 1 trillion dollars.

Finally, it is noteworthy that the crypto market is moving in sync with sell-offs in global exchanges. After Nvidia's better-than-expected financial results, the digital currencies and stocks initially showed an increase but quickly lost their gains, showcasing this situation.

High Borrowing Costs

High borrowing costs make risky assets like crypto assets less attractive compared to bonds and interest-bearing investments.