Bitcoin drops below $80,000 as the crypto market weakens under macroeconomic pressure

The crypto market is starting this week under pressure with a notable drop in bitcoin, and not just that! According to recent data, BTC has lost 2% in the last 24 hours

The crypto market started this week under pressure with a notable drop in bitcoin, and not just that! According to recent data, BTC has lost 2% in the last 24 hours, leading to a wider market decline, where major altcoins collapsed.

What is happening? What does this week hold for us?

A crypto market weakened by macroeconomic conditions

Bitcoin briefly touched $84,000 on Sunday, a key resistance level for a potential bullish recovery towards $90,000. However, the leading crypto collapsed around $83,300 this Monday.

Moreover, major cryptos like XRP, Solana, Cardano, and Dogecoin dropped by 5%, while BNB held up with a 3% increase.

This correction fits within a wider context marked by tariffs imposed by the United States and a deterioration of macroeconomic conditions. Some crypto analysts are concerned about a possible recession in the United States, with increased tensions in financial markets.

According to several experts, the recent crypto correction may also be attributed to massive liquidations of positions by multi-strategy funds. These funds employ various tactics, such as arbitrage, long/short positions, and leverage to maximize their returns.

Ethereum, the victim of bitcoin?

So far, the price of Ethereum remains closely correlated with bitcoin movements. The weakness of the ETH/BTC ratio shows that Ethereum struggles to assert itself independently, despite promising technological advancements. The evolution of certain critical levels will be decisive for market dynamics in the coming weeks. As Ryan Lee, chief analyst at Bitget, thinks:

“Ethereum remains tied to bitcoin movements, stuck between $1,800 and $2,300. The Pectra upgrade and the ongoing expansion of Layer 2 provide it with long-term bullish potential, but in the short term, these fundamentals may not be enough to break the resistance at $2,300-$2,500 without bitcoin leading the charge. If market sentiment deteriorates, ETH could slide to $1,800, but ether could approach the top of its range if BTC recovers.”

The current volatility of the crypto market thus reflects a fragility in the face of macroeconomic uncertainties and liquidations from multi-strategy funds. While bitcoin tries to stabilize its support, Ethereum remains dependent on its dynamics. The coming days will be crucial in determining whether the market can rebound or move towards a deeper correction, as indicated by threats of recession and tariffs on the bull run.