Bitcoin, Ethereum continue plunge — and experts warn of more pain to come

Bitcoin, Ethereum and other major cryptocurrencies have continued their plunge — and experts have warned that more pain could follow.

The leading digital coin by market value dropped as low as $73,112 on Tuesday but has since recovered slightly. Over a seven-day period, the asset has dipped by nearly 16% and is now more than 40% below its October all-time high of $126,080.

Ethereum has been hit harder: the second biggest digital asset has dropped 26% over the past week to $2,184 — well below the $4,946 record it hit last year.

Experts have since said that more pain could follow — traders could begin selling en masse again if they see Bitcoin touch even lower prices.

‘Very bearish’ signals

Bitcoin is now trading significantly below the level it did when pro-crypto Donald Trump was inaugurated as US President in January 2025. And it has tested levels seen when the announced his trade war last April.

Despite hitting a record in October, a huge sell-off sparked by the biggest liquidation event in crypto history hammered Bitcoin, and it has struggled to recover since.

Bitcoin could drop further if it struggles to trade above $74,500, Matt Howells-Barby, Kraken’s vice president of growth, told DL News.

“Holding [levels between $77,000 to $79,000] will be really important in the short term, as a retest to these lows will be a very bearish signal for the market,” he said.

He added that Bitcoin dropping below the 2021 record of $69,000 would be very painful, with the leading cryptocurrency possibly plunging to $54,000.

Galaxy Digital’s Head of Firmwide Research, Alex Thorn, also said in a Monday note that Bitcoin could trade as low as $56,000 to $58,000 over “the coming weeks and months.”

Positive signs

Still, pain could be short-lived, according to some. Bitwise CIO Matt Hougan wrote Tuesday that retail had been in a “full-blown crypto winter” since January 2025 but institutional investment “papered over that truth” — especially the explosion of digital asset treasuries. He added that he expects price recovery to happen soon.

Kaiko research analyst Laurens Fraussen told DL News that while he expected a bear market to continue for another six to nine months, it wouldn’t be as bad as previous drawdowns due to positive regulatory developments. Bitcoin in previous bear markets has plunged 80% below its record highs.

And in a note shared with DL News, blockchain research firm CryptoQuant said that paying attention to exchange flows was key during market stress.

“In the current turmoil, however, on-chain data show stable reserves and contained netflows,” the note read.

Mathew Di Salvo is a news correspondent with DL News. Got a tip? Email at [email protected].