Why the sharp drop? This isn't isolated to crypto—it's tied to a risk-off environment across assets: 
Correlation with equities and tech stocks — Renewed selloffs in U.S. tech (especially AI/software names) are weighing heavily, as crypto has behaved like a high-beta risk asset lately. Global equities, gold, and silver are also down.
Macro pressures — Uncertainty around U.S. monetary policy (e.g., perceptions of hawkish Fed nominees like Kevin Warsh, who historically favors tighter policy) is dampening expectations for rate cuts. This fuels pessimism on risk assets.
Leveraged liquidations and ETF outflows — Volatility triggered billions in BTC/ETH liquidations (e.g., $2.5B+ reported recently), creating a cascade. Spot Bitcoin ETF outflows have also accelerated the pressure.
Sentiment and technicals — Oversold indicators (e.g., RSI in "capitulation" zones) and fear of a deeper correction or "crypto winter" are amplifying the move, with BTC down from recent highs above $80k. What about the next move? No one can predict exactly—crypto is extremely volatile—but here's a reasoned view based on current data:
What about the next move? No one can predict exactly—crypto is extremely volatile—but here's a reasoned view based on current data:
Short-term (days to weeks): Pressure could persist or deepen if risk-off sentiment continues (e.g., more tech weakness or macro surprises). BTC has broken some key supports (~$78k), and momentum is bearish. However, oversold conditions, destroyed sentiment, and signs of weak-hand capitulation (common bottom signals) suggest a potential sharp bounce or relief rally if buyers step in aggressively.
Medium/longer-term (2026): Many analysts see this as a correction within a broader bull cycle, not the start of a prolonged bear market. Institutional adoption, clearer regulations, and historical patterns point to potential new highs later in the year, though volatility will stay high.