Bitcoin's Epic Tumble: Can it Ever Bounce Back?

What to Know:

Bitcoin is losing ground, but at least it’s not doing swan dives like the rest of crypto. 🙃
U.S. stocks are playing hard to get, flirting with a downturn. 📉
SOL is having a full-on tantrum: down 10% in a day and 41% in a month. Ouch. 🫠

So, Bitcoin (BTC) decided to play the “who can fall the slowest” game on Monday. Unfortunately, crypto’s MVP still managed to dip below $94,000 while U.S. stocks said, “Hold my bear(ish) market” and joined the melancholy circus. 🙄

Dropping to a humble $93,900—a mere 1.9% down in 24 hours—Bitcoin’s cry of despair echoed alongside its moody sibling Ethereum (ETH), which nose-dived by 5.9%. The broader CoinDesk 20 Index didn’t want to miss out on the drama, sliding a stage-worthy 5.1%.

Meanwhile, over in stock world, the Nasdaq threw its hat into “Sad Mondays” with a 1.2% drop, and the S&P 500 kept it classy with a genteel 0.5% dip. Love the subtlety, S&P.

As for Solana (SOL)—crypto’s equivalent of a soap opera—it tumbled into the abyss with a performance even gravity applauded. Down nearly 10% in a single day and a catastrophic 41% this month, SOL is tackling plot twists involving fading memes, token unlocking dramas, and skyrocketing inflation. It must be exhausting. 🥴 At $151, SOL has officially canceled its post-election victory parade.

Crypto sage Quinn Thompson of Lekker Capital chimed in on the chaos, tweeting something along the wistful lines of, “Hey gang, $95K isn’t so bad if you plan to cry yourself to sleep for the next six months.” Apparently, there’s an 80% chance of no new BTC highs in three months. Just 51% for no new highs in a year, though—that’s almost optimistic! 🙃

Let’s pivot to the U.S. economy for a moment, where Neil Dutta of Renaissance Macro Research is painting a word picture that could depress even the happiest of emojis. According to Dutta, the labor market is like that friend who keeps ghosting you: sketchy at best. Real incomes? Flatlining. Housing market? Training for the next apocalypse. Government spending? Major snooze fest.

Oh, but wait! Like the cherry on top, market consensus still sees zero slowdown risks. GDP is sipping its latte at a hearty 2.5% median forecast. Can someone please share their rose-tinted glasses?

Dutta wrapped it up with a mic-drop moment: 2025 may outdo 2023 in its ability to surprise us—but this time, in a downward spiral. Yay. He predicts crumbling longer-term interest rates, an equity selloff, and a jobs market that’s about to get ghosted by good fortune. You know, just another day in paradise. 🌴

2025-02-25 00:52

Bitcoin’s Epic Tumble: Can it Ever Bounce Back?

What to Know:

Read More