Concerns over macroeconomic factors, coupled with emerging disruptions from artificial intelligence, are intensifying the ongoing weakness in the cryptocurrency market. Major digital currencies have experienced weekly declines ranging between 8% and 11%.
Bitcoin dropped to approximately $62,900 on Tuesday, marking a daily decrease of 2.1% and a weekly fall of 7.5%. This continued gradual decline has neither resulted in a clear breakdown nor sparked a significant rebound.
The trading activity has confined Bitcoin within the $60,000 to $70,000 range established after the sharp downturn on February 5th. This zone is increasingly perceived less as a solid foundation and more as a temporary pause awaiting new developments.
Altcoins have suffered even steeper losses. Ethereum hovered near $1,829 with an 8% weekly drop; XRP declined by 10.8%; Solana’s SOL fell by 11.3%; and Dogecoin decreased nearly 10%. The underperformance among these major altcoins indicates shrinking risk appetite focused primarily on Bitcoin — though even that support is weakening.
Data from CryptoQuant highlights that sell-side pressure for altcoins has reached levels not seen in five years, implying that holders are actively offloading assets into an environment where buyers are scarce outside of top-tier cryptocurrencies.
This kind of persistent selling pressure typically causes prices to drift downward gradually without triggering sharp liquidation events that attract bargain hunters—resulting in a slow erosion difficult for momentum traders to capitalize on.
Alex Kuptsikevich, chief market analyst at FxPro, noted via email that Bitcoin’s recent recovery attempts resemble consolidation phases rather than true reversals. He identified a bearish pennant pattern forming on daily charts and suggested that falling below mid-$65,000 would confirm further downside momentum while surpassing $70,000 would negate this pattern.
More generally speaking, Kuptsikevich emphasized the historical importance of the $60K–$70K range: it served as resistance throughout most of the entire bullish cycle in 2021 and now functions as contested ground between long-term investors accumulating coins and newer participants cutting their losses.
Renewed AI-Driven Market Anxiety
An additional layer contributing to market strain stems from broader macroeconomic forces unrelated directly to cryptocurrencies but impacting shared pools of risk capital across sectors.
A recent report by Citrini Research highlighted an emerging “AI scare trade,” warning about widespread economic disruption caused by artificial intelligence technologies affecting delivery services, payment systems,and software industries alike.This insight triggered sell-offs among tech-related stocks as investors reevaluated which firms stand to gain or lose amid AI adoption trends .
This broad reassessment often impacts crypto markets with some delay.Digital assets do not always move synchronously with equities,but they remain sensitive to liquidity shiftsand investor positioning changes driving risk-off sentiment.Currently,both markets exhibit aligned bearish tendencies .
Bitcoin now trades roughly48% below its all-time high recorded last October,and stands about5 .5 % beneath its2021 peak near$69 ,000.The longer price remains stuck within this band without reclaiming higher territory,the greater likelihood technical indicators will favor bears.