Bitcoin crashed heavily over the weekend, crashing from its $108,400 high to as low as $92,000.
Massive outflows from the spot ETF market
Analysts believe that current market conditions are part of a 'healthy correction.".
Conversely, certain analysts are predicting a low of $85,000 for Bitcoin soon.
Ethereum is trading between $3,000 and $4,000 and could reach a $6,000 price tag before the end of 2025.
The weekend started on a brutal note for the crypto market, with a total of $1.4 billion liquidated over 24 hours, according to Coinglass data.
Bitcoin also experienced a sharp correction underneath the $95,000 zone, along with several altcoins following suit.
This crash, one of the most significant liquidation events in history, has expectedly rattled traders.
Hence the question: What does this week hold for Bitcoin and Ethereum?
Bitcoin's price dropped to $92,000 on Friday, marking a 13.4% fall from its all-time high.
Interestingly, Bitcoin's crash came in the same week it hit this ATH of $108,353 on Binance.
Leveraged long traders bore the brunt of this crash, losing as much as $850 million of the total $1.4 billion.
According to data from SoSoValue, the downturn also coincided with a record $680 million in outflows from the spot Bitcoin ETFs market on Thursday.
This event also marked the highest single-day withdrawal since these products were launched in January.
As expected, the altcoins suffered even worse declines, with Ethereum plunging 16%, XRP dropping 18%, and Dogecoin taking the cake with a staggering 26% dump.
The slump affected the crypto market much more than the traditional market, which also took a hit.
The S&P 500 and NASDAQ 100, among several others for example, crashed heavily amid the downturn.
All of the above also coincided with the Federal Reserve’s recent announcement of fewer interest rate cuts in 2025.
These double-digit drops have been particularly concerning for retail and institutional investors who only recently joined.
Overall, optimistic speculators believe that President-elect Donald Trump's pro-crypto policies could be a major driver of long-term bullishness.
As with what comes next for Bitcoin, Crypto analysts are divided on its near-term trajectory.
For example, analyst Captain Faibik believes that Bitcoin's correction may soon conclude.
The analyst pointed towards the bearish divergence in the cryptocurrency’s Relative Strength Index over the past month and expects a recovery around the $94,000 level.
Conversely, analyst Cold Blooded Shiller believes that a deeper pullback could be coming.
Moreover, said pullback could drag Bitcoin further down towards the $85,000 mark.
Additionally, futures market analyst Byzantine General has noted relentless selling pressure from spot holders.
According to the analyst, this bearish pressure has caused a disconnection between the spot and derivatives markets.
He notes that this selling activity (particularly on Coinbase) has reached levels not seen since Bitcoin traded at around $66,000.
Just like Bitcoin, Ethereum is facing challenges of its own.
In particular, the cryptocurrency’s price is struggling to maintain the $4,000 psychological level.
So far, analysts are predicting that the cryptocurrency could consolidate between $3,000 and $4,000 in the near term.
For example, in a recent newsletter, Rekt Capital cited the $3,000 zone as a crucial support level.
The analyst believes that an incoming inverse head-and-shoulders pattern could develop and cause a possible trend reversal to the upside.
Possible trend reversal on Ethereum
Similarly, positive momentum could come from the Ethereum ETF market, which has seen encouraging inflows lately.
According to Farside data and Soso value, the spot Ethereum ETF market has amassed $2.43 billion since its launch in July 2024.
In addition, insights from VanEck show that Ethereum’s price could soar to as high as $6,000 by late 2025, especially if staking yields are introduced.
At the end of it all, resilience is crucial as the Crypto market navigates this volatility.
Experts are stressing the importance of collaboration between blockchain companies and regulators.
Defenses against hacks and liquidations are being put in place, along with investor education that could help stabilize the ecosystem.
While the current correction drags on, analysts are hopeful for recovery and growth in the short to long terms, especially as institutional interest and adoption continue to rise.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.