Bitcoin, Ethereum Markets Show Signs of Selling Exhaustion After 30% Drop

Bitcoin, the leading digital asset, experienced a significant contraction from $83.5k to $74.5k, reflecting a $150B decline in the market cap. This downturn was mirrored by Ethereum, the second-largest digital asset, which also saw a notable decrease in value. The recent sell-offs in both Bitcoin and Ethereum markets have been substantial, but there are indications that the scale of these sell-offs is decreasing with each price drop. This suggests that investors may be approaching a state of short-term selling exhaustion.

The on-chain metrics analyzed by Glassnode provide further insights into the current market dynamics. The data shows a growing divergence between Bitcoin and Ethereum, with both assets experiencing a potential seller exhaustion. This divergence is significant as it points to a potential shift in market sentiment, where the aggressive selling pressure may be starting to wane. Historical data also suggests that recent rallies could be bear market rebounds rather than trend reversals, adding another layer of complexity to the market analysis.

Despite the aggressive market drawdown and weakening institutional demand for Bitcoin, the Glassnode weekly report highlights some signs of optimism. The report indicates that the recent tariff announcement by the U.S. has had a significant impact on major financial markets, including the cryptocurrency sector. This impact is evident in the market jitters and the subsequent price adjustments in both Bitcoin and Ethereum.

The recent price leg lower in Bitcoin, which saw it surrender the $80,000 support level, further points to potential seller exhaustion. This is supported by the on-chain metrics, which show a growing divergence between Bitcoin and Ethereum. The data suggests that the selling pressure in the Ethereum market may be nearing exhaustion, which could lead to a stabilization or even a rebound in the near future.

The cryptocurrency market has been volatile, with Ethereum's price dropping by more than 30% over the past 30 days and nearly 6% in the last 24 hours. However, the positive trend observed after President Trump's tariff delay announcement indicates that the market may be showing signs of recovery. The recent sell-offs in both Bitcoin and Ethereum markets have been substantial, but the decreasing trend in selling pressure suggests that investors may be approaching a state of short-term selling exhaustion. This could lead to a stabilization or even a rebound in the near future, as the market adjusts to the recent tariff announcements and other external factors.