BEARISH 📉 : Bitcoin and Ethereum see significant declines amid multiple market pressures

Recent declines in crypto markets have significantly impacted major cryptocurrencies:

Bitcoin fell 8.1% in 24 hours and 29.5% over 30 days.
Ether decreased by 9.4% in a day and 41.4% over the month.
XRP dropped 10.3% daily and 42.7% monthly.
Solana slid 12.3% in one day and 42.8% over the month.

Macro analyst Alex Krüger attributes these declines to:

Narrative fatigue and weakening demand.
A momentum break leading to a seller's market.
Reversed flows due to legal actions against criminal networks.
The rise of quantum computing fears and AI competition for capital and talent.
A shift in market perception, with institutions taking over from early adopters.
Political risks and minimal innovation since Hyperliquid.
The oversupply and overvaluation of cryptocurrencies.

Krüger highlights that the nomination of Kevin Warsh as the US Federal Reserve chair has reinforced market concerns about quantitative tightening. He notes that current indicators suggest a possible local market bottom, but the overall damage is already evident.

In discussions about crypto's future role in an AI-led cycle, there is potential for cryptocurrencies to serve as infrastructure for machine-to-machine value transfers.

At press time, BTC is trading at $66,029.

Bitcoin price chart