Bitcoin and Ethereum are declining in the crypto market: What are the reasons?

The Speed of Decline in the Crypto Market is Increasing

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

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

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

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

Decline in Ethereum

Ethereum, the second-largest by market capitalization, has also decreased by over %10, with its price dropping to 2 thousand 717 dollars.

Effects of Uncertainty Continue

Expert analysts point out that concerns about interest rates, the resolution of leveraged positions, and profit realizations are driving investors away from the crypto markets. Analysts emphasize that investors are trapped in an environment filled with uncertainties regarding monetary policy and that concerns about the high valuations of technology companies have a negative impact on investments.

The sharp decline experienced last month created a crisis of confidence in the market, leading to panic sales and a decrease in liquidity, which caused price volatility. Expectations that the Federal Reserve will not relax its monetary policy in the short term, macroeconomic uncertainties, institutional exits, and profit realizations triggered sales.

Investor Psychology

The fluctuations in Bitcoin's price below the 100 thousand dollars level are increasingly impacting investor psychology. In recent days, the observed high valuation and decline in technology stocks have reduced investors' risk appetite.

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

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

High Borrowing Costs

High borrowing costs make riskier assets such as crypto assets less attractive compared to bonds and interest-bearing investments.