Why Is The Crypto Market Having A Tough Day Today?

After an explosive rise, Bitcoin broke the $100.000 barrier, while Ethereum has risen 92% in a month. But now the sentiment seems to be changing. What is going on?

Short euphoria followed by correction

Recently, crypto investors celebrated. Bitcoin (BTC) shot up and even reached the iconic $100.000. Altcoins also performed great, with Ethereum (ETH) making the biggest jump. This coin dropped to a low of $1.400 in April, but yesterday reached a local peak of $2.700. However, today the picture is different: the entire crypto market is in the red. It seems that the party is over, but that does not necessarily have to be bad news.

A healthy correction after a rapid rise

The recent decline can be attributed mainly to profit taking after the spectacular rally. Corrections like this are completely normal and even healthy. Ethereum rose by a whopping 92% in just one month. Such rapid increases cannot continue indefinitely. A pullback can help moisten the market, attract new investors and prevent overheating.

The Crypto Fear & Greed Index is currently at 70, indicating ‘greed’. This is not an extreme level, but it does signal an overheated market. There is room for cooling, but also still potential for further growth in the long term.

Institutional parties continue to buy

Despite the correction, interest from major investors remains strong. This provides a safety net for the market and can support price developments in the long term.

Take Strategy (formerly MicroStrategy), for example, which recently increased its Bitcoin holdings to a whopping 555.450 BTC – worth almost $57 billion at the current price of $102.600. Metaplanet is also undeterred, aiming to increase its holdings to 10.000 BTC. Then there’s the relatively new Twenty One Capital, founded in 2025 by Jack Mallers (CEO of Strike), which recently purchased 4.812 BTC worth $458,7 million. Their goal? To raise over 42.000 BTC for an upcoming IPO.

Apparently the hunger for crypto is far from satisfied!

Frequently Asked Questions

What's Causing the Recent Downturn in the Crypto Market?
The decline is mainly a result of profit taking after a strong rise. A correction is normal and helps the market to cool down.

What is the current status of the Crypto Fear & Greed Index?
The index is at 70, indicating a period of greed, which could indicate an overheated market.

Will institutional investors remain active in crypto?
Yes, institutional investors such as Strategy and Metaplanet continue to add to their positions, which is a positive signal for the future of the market.