Analysts warned of deepening retail anxiety, unusual spikes in social activity, and the potential for a broader market correction as major cryptocurrencies extended their declines.
Bitcoin briefly touched its lowest level since May on Sunday before stabilizing slightly, with market sentiment firmly entrenched in “extreme fear.” The Crypto Fear & Greed Index held at 10 for the second consecutive day, underscoring the intensity of bearish sentiment.
At 6:20 p.m. UTC, bitcoin (BTC: $92,115.54) was trading near $95,087, down 1% from the previous day after dipping under $94,000 — its weakest level since May 6, according to TradingView.
Momentum across altcoins was similarly weak. Ether (ETH) slipped 3.23% to $3,113, XRP dropped 2.1% to $2.21, BNB declined 1.6% to $926.21, and solana (SOL) fell 3.6% to $137.79.
Crypto analyst Ali Martinez cautioned that bitcoin’s breakdown from a key technical channel may pave the way for a decline toward $83,500. Meanwhile, analyst Benjamin Cowen emphasized the emergence of a death cross, a technical signal that has previously coincided with local bottoms during the current cycle. Cowen said bitcoin must stage a rebound within the next week to maintain its cyclical structure, warning that failure could lead to further losses before any attempt to reclaim the 200-day moving average. He advised traders to “trade the market you have, not the market you want.”
Market strategist Charlie Bilello highlighted an extraordinary divergence in asset performance: gold is up 55% in 2025, making it the year’s strongest major asset, while bitcoin — up only about 1% — is the weakest. He noted that such an extreme reversal of the 2013 pattern has no precedent in any past calendar year.
Macro developments also weighed on sentiment. U.S. Treasury Secretary Scott Bessent said that President Donald Trump’s proposal for $2,000 tariff-funded dividend payments would need congressional approval before being implemented. The plan initially boosted markets, with traders anticipating a wave of consumer spending and potential crypto inflows once funds were distributed.
Still, some signs hint at a potential market bottom. Market intelligence platform Santiment reported that bitcoin’s social-dominance levels jumped to a four-month high during Friday’s drop below $95,000, signaling elevated retail panic. Such surges have historically preceded reversals, though the firm noted they are not reliable guarantees.
In a possible positive catalyst, MicroStrategy (MSTR) Executive Chairman Michael Saylor teased the company’s next bitcoin purchase, posting “Big Week” on X alongside a StrategyTracker screenshot. The announcement expected Monday could provide a sentiment boost amid an otherwise risk-averse environment.
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