The cryptocurrency market has recently experienced a notable downturn

Bitcoin (BTC) has seen a decline, currently trading at approximately $108,527. Ethereum (ETH) follows suit, with its price around $2,557.

The cryptocurrency market experienced a notable downturn in recent trading, prompting investors to reexamine the longevity of the current bull run. Bitcoin, the leading digital asset, dropped to $107,300 by 07:45 ET (11:45 GMT), showing a 4.12% decline from its weekly high.

Meanwhile, Ethereum, the second-largest cryptocurrency, fell over 8% from its peak earlier in the week as broader market sell-off pushed ETH to trade at $2,557.06 at last check.

Bitcoin & Altcoins Performance Overview

Bitcoin (BTC) is down, now trading at approximately $108,527.

Ethereum (ETH) price is around $2,557.

Other major cryptocurrencies, including BNB, Cardano (ADA), and XRP, are also in the red.

Bitcoin, being the prime crypto coin, has experienced several significant uprisings and subsequent downturns throughout its lifetime. Some of the most notable cycles include:

2013: A surge from ≈$145 to over $1,200, followed by a plummet to less than $300 in 2014.

2017: Rising from ≈$1,000 to nearly $20,000, then a further drop to ≈$3,200 in 2018.

2020-2021: A climb from ≈$8,000 to over $64,000, before a decline to ≈$30,000 by July 2021.

What Is Driving Crypto Prices Today?

Analysts suggest that the recent rally in cryptocurrencies was fueled by optimism over regulatory developments, such as the advancement of the GENIUS Act, which aims to regulate stablecoins.

However, the sudden introduction of new tariffs by President Donald Trump has since brought about an element of uncertainty, leading to a reevaluation of risk assets like cryptocurrencies.

Several factors contribute to this market correction:

Economic Policies: Recent announcements of potential tariffs by President Trump have introduced uncertainty, affecting both traditional and crypto markets.

A Significant Hack: A major hack on the Bybit exchange, leading to an estimated $1.5 billion loss, has shaken investor confidence in centralized platforms.

Regulatory Developments: While the U.S. Senate’s approval of the GENIUS Act signals progress in regulating stablecoins, the market awaits further clarity on its implications.

Investor Sentiment

Despite the downturn, institutional interest in cryptocurrencies remains strong. Major firms like BlackRock (NYSE:) and Fidelity are expanding their offerings in the crypto space, showcasing their long-term confidence.

However, short-term volatility can be influenced by macroeconomic factors and market sentiment. As the broader market experiences a sell-off, cryptocurrencies are also subject to price fluctuations.

Although the current dip may spark concerns, it’s crucial to place it within the broader context of market cycles. Investors are advised to stay abreast of the latest developments and consider both the risks and opportunities presented by the evolving crypto landscape.