Bitcoin Plunges to 6-Month Low as Bull Market Falters

The cryptocurrency market experienced a painful reversal this week as Bitcoin plummeted to $94,500, its lowest level since May, representing a staggering $12,500 drop from Monday’s peak of $107,000. The decline began after a short-lived relief rally fueled by US President Trump’s promise of $2,000 tariff checks to non-high-income Americans and hints that the longest government shutdown would end soon. Bitcoin had initially responded positively, climbing to $107,000 on Monday before the rally collapsed. The asset’s next attempt at recovery came on Thursday when the government reopening became official, but resistance at $104,000 proved too strong, leading to a violent rejection that sent BTC crashing below the critical $100,000 psychological level.

The broader market followed Bitcoin’s downward trajectory, with Ethereum (ETH) declining 4.2% to $3,074 and Solana (SOL) suffering the most severe losses at over 10% for the week. The overall market sentiment turned decidedly bearish, with analysts declaring the potential end of the bull market and the beginning of a more profound bear cycle. Market data reflected the carnage, with total market capitalization standing at $3.3 trillion, 24-hour volume at $280 billion, and Bitcoin dominance at 57.4%. The mood was further soured by reports that Bitcoin whales and miners had moved large portions of the asset to exchanges, typically a precursor to selling pressure and market declines.

Amid the widespread market weakness, Ripple’s XRP emerged as a notable outlier, gaining 4.4% to reach $2.26 despite the broader downturn. The positive performance was largely driven by the successful launch of Canary’s XRP ETF (XRPC), which finally went live for trading on Thursday after numerous delays and uncertainty. The first spot XRP ETF with 100% exposure to Ripple’s asset broke the previous SOL record for launch day trading volume, providing a rare bright spot in an otherwise bearish market environment. The ETF’s approval came after Nasdaq issued its official listing notice on Wednesday, bypassing the final regulatory hurdle.

Other cryptocurrencies also defied the market correction, with Litecoin (LTC), Monero (XMR), WLFI, and Uniswap’s UNI token all posting gains for the week. UNI’s performance was particularly impressive, soaring 35% following the announcement from Uniswap founder Hayden Adams that the exchange would introduce a sweeping governance proposal featuring a long-anticipated fee switch. The proposed mechanism would redirect a portion of trading fees toward burning UNI tokens, creating deflationary pressure that excited investors and drove substantial buying interest despite the broader market weakness.

While prices collapsed and investor sentiment soured, several positive regulatory and fundamental developments emerged that could shape the market’s future trajectory. The US Treasury and IRS outlined a new safe harbor that will allow crypto ETFs to stake digital assets without paying extra tax, removing a significant barrier for institutional participation in staking services. This development comes as analysts question whether Bitcoin’s famous 4-year cycle is finally crumbling, with many arguing that the cryptocurrency is entering a new, more sophisticated and mature phase despite the current price weakness.

Despite the price collapse, on-chain data indicated that Bitcoin’s network fundamentals remain strong. The ‘Miner Heartbeat’ metric and ‘Hash Rate Momentum Score’ showed that Bitcoin’s underlying network health was as robust as during the summer rally, suggesting that the technological foundation remains intact despite the price volatility. This divergence between price action and network strength highlights the complex dynamics currently affecting cryptocurrency markets, where short-term sentiment appears to be overshadowing strong fundamental metrics that typically support long-term bullish thesis.