- Bitcoin has fallen 8% over the past week to US$110,534, approximately 11% below its all-time high, while other cryptocurrencies like Dogecoin have declined by 20%.
- The ongoing US-China trade war and US government shutdown are contributing to market instability, with Trump’s tariff comments exacerbating investor fears.
- Glassnode analysis reveals a historic US$19 billion futures deleveraging event exposed market fragility, pushing recent buyers into losses amid declining institutional demand through ETFs.
- Bitwise CIO Matt Hougan notes that institutional resilience remained strong with no major collapses, suggesting the market is maturing and the bull run may continue once fundamentals regain focus.
The crypto crash — which started last Friday and seemed to stabilise or even reverse on Monday — is deepening. Bitcoin currently trades at US$110,534 (AU$170,287), down 8% over the past week and around 11% from its all-time high.
Other crypto assets dropped by as much as 90% during the initial crash, recovered somewhat by Monday, and have now dipped again. Dogecoin, for example, is down 20% on the weekly charts — one of the biggest losers of the ongoing crash.
The Fear and Greed Index also returned to Fear, dropping to 28 from 34 yesterday and 70 last week, when markets were still in Greed mode.
Trump Confirms US–China Trade War
So, what’s causing the continued market disruptions? Well, the US–China trade war isn’t helping. As Crypto Wendy calls it, the on-and-off spats are “bearish for the market” — plus, the US government is in a shutdown.
Following questions during a press conference about whether there would be a sustained trade war between China and the US, Trump said, “we’re in one now”. He added that the tariffs were especially needed for America’s national security:
If we didn’t have tariffs, we would be exposed as being a nothing, we would have no defence.
Donald J Trump, U.S. PresidentTrump’s comments on Friday kicked off the crash and seem to continue to contribute.
But that’s only part of the story. According to a recent analysis by Glassnode, Bitcoin’s pullback from its record high was driven by a historic US$19 billion (AU$29.3 billion) futures deleveraging event that exposed fragility in the market.
The correction pushed recent buyers into losses, coincided with ongoing long-term holder distribution, and revealed weaker institutional demand through declining ETF inflows. Despite the heavy reset, Glassnode noted that market structure remains orderly, with futures leverage flushed and volatility elevated as the market waits for the next steps:
The market remains in a reset phase, awaiting renewed demand to confirm recovery.
GlassnodeRelated: Onchain Capital Could Top $100 Trillion by 2030 as Wall Street Embraces Blockchain, TD Cowen Says
Bitwise’s Two Cents on the Crash
Bitwise CIO Matt Hougan said the recent crypto market correction, though sharp, did not trigger any major institutional collapses, with losses largely contained to individual investors — a sign of growing market resilience.
He noted that blockchain infrastructure held up well, with DeFi platforms like Uniswap, Aave, and Hyperliquid operating smoothly, even as some centralised exchanges, such as Binance, faced disruptions and refunds. Finally, Hougan pointed out that professional investors remained calm, with little panic evident — an indicator that the crypto market is maturing and better equipped to handle volatility.
It appears that the damage was contained to individual investors. Firms experienced losses, but it looks like they’ll all survive. That’s one of the reasons crypto rebounded so quickly.
Matt Hougan, Bitwise CIOAll that said, Hougan believes that while crypto “may be a little jittery in the near term”, the bull market isn’t cancelled:
I expect the market will catch its breath and renew its attention on crypto’s fundamentals. When that happens, I think the bull market will continue apace.
Matt Hougan, Bitwise CIORelated: Ripple CEO Brad Garlinghouse Urges Equal Treatment for Crypto and Traditional Finance Firms
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