The crypto market is weathering a historic storm this week, with Bitcoin (BTC) leading a punishing descent to depths not seen since the US presidential election in 2024.
Sheer panic has set in among traders, as the Fear and Greed Index has plummeted to 14, firmly placing it in "Extreme Fear" territory.
The primary catalyst for this plunge is a staggering institutional retreat. Recent sessions have seen a seismic $1.49 billion outflow from spot Bitcoin exchange-traded funds (ETFs), thus pushing total figures beyond the critical $2.8–$2.9 billion threshold.
This forced BTC to dip below the average cost basis for most ETF holders and sparked a domino effect of distressed selling out there.
In reality, three powerful gusts fanned these flames into a full-blown firestorm:
1. Fed jitters. News of Kevin Warsh's nomination as Federal Reserve Chair injected uncertainty into monetary policy outlooks, delivering a decisive final shove to prices.
2. AI sector drag. A sell-off in tech—highlighted by AMD's 14% slide due to a weak forecast—weighed heavily on crypto miners tied to artificial intelligence infrastructure, therefore creating cross-market pressure.
3. Liquidation wave. Breaches of key support levels triggered a wave of forced liquidations, wiping out over $235 million in long futures positions.
Together, these powers formed a perfect wild wind that erased nearly half a trillion dollars from the crypto market cap in a matter of days.
However, the road to 2026 is winter before spring.
Yet, even amid such a deep freeze, major institutions have already begun plotting the thaw. Analysts at CoinShares and JPMorgan envision a powerful resurgence in the second half of 2026, charting a course for Bitcoin toward the $120,000–$170,000 range.
This bullish endgame is echoed in mathematical models from Binance and Kraken, which project an average price for this year between $82,200 and $122,000.
The market has recently plunged into a deep correction as sentiment shifted decisively. For disciplined, long-term investors, the current turmoil may present an opportunity for strategic accumulation, with quotes languishing below $75,000. However, the forecast for the short run remains turbulent, with a clear risk of descending toward $70,000, and possibly even $65,000 in the days ahead.
The ultimate recommendation is to buy Bitcoin when the price reaches $66,000. Lock in profits at $84,000. Place Stop Loss at $56,000.
Calculate your open position so that a potential loss (protected by a Stop Loss order) is limited to 1% of your deposit. If your account balance does not allow entering a position of this size, it is better to skip the trade and wait for other market signals that meet low-risk criteria.
This content is for informational purposes only and is not intended to be investing advice.
