Over the past few weeks, the crypto market has come under strong pressure. All leading digital assets showed significant declines, and Bitcoin and Ethereum are trading at key support levels. On Tuesday, #BTC fell below $98,000; moreover, almost all of the top 100 cryptocurrencies by market capitalization were in the red over the past seven days.

This collapse of the crypto market was accompanied by declines of major digital giants on Wall Street. The main catalyst was the marketing hype around a new Chinese AI - Deepseek. Investors began to exit risky assets en masse, including stocks and cryptocurrencies. Pressure was intensified by the proclaimed economic-geopolitical doctrine of the new US President Donald Trump.

Macroeconomic context and impact on the crypto market

The financial market as a whole feels unstable. Today, Fed Chairman Jerome Powell will announce whether to cut or not cut rates, and this has literally frozen the cryptocurrency market. Market participants are awaiting Mr. Good Evening's speech, ready for another low on altcoins.

Cryptocurrencies are traditionally considered risky assets, so during periods of uncertainty, investors often prefer to move into safe-haven instruments such as gold and US government bonds. This has resulted in a correction in the crypto market, where meme coins were particularly hard hit.

Political factors and crypto regulation

Despite the instability of the market, the cryptocurrency industry remains an important topic in political discussions. Senator Cynthia Lummis introduced a bill to create a national Bitcoin reserve, which could signal the gradual integration of crypto assets into government structures.

Moreover, let's not forget that President Donald Trump made an unexpected statement that the US might use Bitcoin to cover its $35 trillion debt. Although this proposal sparked wide resonance, no specific mechanisms for its implementation have been proposed so far. Nevertheless, such statements indicate the growing role of cryptocurrencies in the political and economic agenda.

What’s next? Forecast and prospects

The crypto market continues to remain under pressure, but there are several factors that could change the situation:

  • The Fed's decision on interest rates – if the US central bank begins more aggressive easing of policy, it could trigger a new influx of liquidity into crypto assets.

  • ETFs and institutional flows – despite the current correction, Bitcoin exchange-traded funds continue to attract capital, which could support the market in the long term.

Analysts' opinions

David Lovanth, head of research at FalconX, believes that the current decline is short-term in nature: "We are witnessing a correction caused by macroeconomic factors, but the fundamental factors of the crypto market remain strong."

Famous crypto investor and analyst Alex Kruger notes: "The decline was expected after rapid growth. If BTC holds above $98,000-100,000, it will be a good base for a new upward trend."

In turn, crypto market expert Nicholas Merten claims that the current correction may continue: "We have seen that institutional investors are being cautious. If stock markets continue to decline, cryptocurrencies may experience an even greater drop."

The market remains in a suspended state, and the coming weeks will be crucial. However, despite panic sell-offs, cryptocurrencies continue to demonstrate resilience. History shows that after such corrections, the market can recover quickly, and institutional demand, even in turbulent conditions, remains high. So, the panic on Wall Street is not the end of the crypto era, but merely another wave of volatility that this market has learned to cope with.