Bitcoin price continued falling for the sixth day on Wednesday, visiting levels last seen in November 2024 as risk sentiment remained fragile amidst a confluence of macro headwinds and a lack of demand.
Driven by escalating geopolitical tensions and a rotation away from high-beta assets, the premier cryptocurrency plunged to a lows around $73,000 before staging a modest recovery toward the $76,000 mark.
The total crypto market cap has fallen over 3% in the past 24 hours and hit a low of $2.5 trillion before recouping some of the losses.
This broader retreat followed a staggering $467 billion wipeout in total market value since late January.
Meanwhile, the crypto fear and greed index fell three points to 14, marking a fresh multi-month low and firmly anchoring the market in a state of extreme fear.
Altcoins traded in the red throughout the day, with single-digit gains limited to stablecoins and a few isolated outliers.
Why is Bitcoin price going down?
Bitcoin price broke below critical support zones after confirming a 15-month low near $73,000, as a cascade of bearish catalysts continued to weigh heavily on market structure.
Investors have grown increasingly defensive following a rapid shift in macroeconomic expectations triggered by US President Donald Trump’s nomination of Kevin Warsh as the next Federal Reserve chair.
Warsh, known for his hawkish monetary stance and emphasis on a smaller Fed balance sheet, has revived fears of a prolonged period of tight liquidity.
This policy pivot crushed hopes for interest rate cuts in the near term, boosting the US dollar and pressuring Bitcoin into deeper correction territory.
As safe-haven demand surged, capital flowed into US Treasuries, gold, and silver, while Bitcoin’s “digital gold” narrative fell apart.
Gold jumped to fresh highs on renewed Middle East tensions.
Adding to the rout, leveraged positioning in the crypto market accelerated the drawdown.
More than $5.4 billion in leveraged long positions were liquidated over the past 72 hours, with nearly $214 million flushed from Bitcoin trades alone in the last day.
This liquidation spiral amplified the downside pressure, turning what was a controlled pullback into a sharp capitulation.
Institutional flows have also dried up. Spot Bitcoin ETFs, once a key driver of bullish sentiment, have recorded over $1.5 billion in outflows over the past week and $6 billion in redemptions since November.
As risk-off sentiment intensifies, these vehicles have failed to attract sustained interest from traditional finance players.
Market participants are now bracing for US labour market data due later this week.
Jobless claims and the non-farm payrolls report will offer fresh clues on whether the Fed’s hand may be forced toward a more dovish stance.
Until then, Bitcoin is expected to remain caught in the crossfire of hawkish policy signals, geopolitical friction, and collapsing demand.
Will Bitcoin price go up?
In terms of technicals, Bitcoin breached its 100-week simple moving average that has historically preceded deeper market corrections. (See below.)
Every time Bitcoin has lost 100W EMA, it has retested the 200W EMA.
Right now, 200W EMA is at $68,000 and this will most likely be retested.
Once the retest happens, you could start accumulating for the long-term.
The next critical level sits near the 200-week exponential moving average at around $68,000, with some analysts warning of potential downside toward $60,000 or lower if that threshold gives way.
According to market analyst Altcoin Sherpa, that remains a possibility based on current circumstances.
on 1 hand it makes sense for $BTC to tap the 200W EMA, an indicator that hasn’t been touched since 2023. This would be around 68k.
On the other, this is still an interesting level as the 2025 low.
Either way, the bottom is closer than we think imo
Bitcoin is also close to confirming a bearish head and shoulder pattern on the 4-hour chart as observed by trader and analyst Sam Price.
“It looks like today will end red,” Price wrote while projecting a downside target around $69,300.
To avoid further downside, Bitcoin must reclaim $76,000 with conviction, as noted by some analysts.
According to analyst Jelle, it would position Bitcoin for a recovery rally.
“Rejection from the grey box area will be the final nail in the coffin for a while,” the analyst added.
At the time of publication, Bitcoin price was hovering above $74,500, down roughly 3.5% on the day.
Altcoins close the day in red
The altcoin market endured a period of intense volatility today, briefly sliding below the critical $1 trillion psychological floor.
However, a wave of late-session buying during Asian trading hours helped the sector reclaim some ground, pushing the total altcoin market cap back above $1.1 trillion.
Market leaders, including Ethereum (ETH), XRP, Solana (SOL), and BNB, posted losses from 3% to 8%.
Ethereum, in particular, touched an 11-month low near $2,100 before stabilising.
The top gainers for the day, ATOM, WLFI, XMR, held gains between 1-3%. See below.
Source: CoinMarketCap.
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