Cryptocurrency markets took another heavy hit on Tuesday, reversing an early rally that tracked equity futures. After U.S. markets opened, disappointing ADP employment data and a sharp decline in tech stocks dragged the broader market lower. The sell-off accelerated on reports that the United States and Iran had abandoned negotiations, sending BTC below $75,000 to a low of $72,000. Ethereum followed suit, sliding to $2,076, barely holding above the psychologically important $2,000 level. Since late January, the total crypto market cap has evaporated by more than $460 billion.
Stifel Sees Bitcoin Dropping as Low as $38,000
Bearish voices grew louder amid the rout. Stifel, a private investment bank managing nearly $500 million in assets, warned that bitcoin could fall to $38,000 based on historical cycle patterns. The firm cited the Federal Reserve's ongoing tightening, slower U.S. crypto regulation, shrinking liquidity, and heavy ETF outflows as key headwinds. Stifel described market sentiment as 'extreme fear,' noting that fading interest from both institutions and retail investors is the primary driver of the downturn. On-chain data also revealed that the government of Bhutan has begun selling bitcoin, adding supply-side pressure.
BTC at 15-Month Low, Safe-Haven Credibility Questioned
Bitcoin has now traded at its lowest level in 15 months, down more than 40% from the peak reached in October last year. The ongoing global risk-off environment has severely tested bitcoin's narrative as a safe-haven asset. With geopolitical and macroeconomic uncertainties persisting, near-term catalysts for a rebound appear scarce. Some analysts expect further downside, with BTC potentially sliding toward the $60,000 area.