The last week in crypto felt like a sprint followed by a nosedive — and maybe that’s the best way to describe digital currencies in general. Rapid rises and sudden drops, euphoric streaks followed by gut-checking selloffs. But in the last seven days, the world’s most popular cryptocurrency — Bitcoin — saw a meaningful drop in price, and it wasn’t alone. The crypto market moved in unison downward as investors reacted to broader economic and geopolitical unease.

According to reports from ABC News, Bitcoin’s price plummeted by about 10% over the past week, a sharp move that grabbed attention not just from seasoned traders but from everyday observers who’ve wondered if crypto’s roller-coaster ride was finally hitting its big dip. That’s no small shakeup when you consider how much attention Bitcoin has drawn as a bellwether for the whole digital-asset sector.

Below Bitcoin’s headlines, other major tokens were hit even harder. Ethereum — the second-largest cryptocurrency by market cap — lost nearly one-fifth of its value over the same period, and Solana’s price was essentially cut in half, a dramatic reminder that volatility still rules crypto markets.

What’s striking about this slide — and what makes it more than just another headline — is how many different pieces of the economic puzzle seem to be lining up at once. Experts who spoke to ABC News pointed to geopolitical and economic uncertainty as a key backdrop. When markets get jittery, riskier assets like cryptocurrencies tend to get sold off first. Traders looking to take risk off the table can accelerate a drop, creating a kind of momentum-driven spiral as positions unwind and selling feeds more selling.

That explains part of what we saw. As the initial drop began, it likely forced some leveraged buyers to liquidate their positions, intensifying downward pressure and creating a cascade effect. That dynamic isn’t unique to crypto — it happens in other markets during sharp moves — but because digital assets are relatively thinly traded compared with stocks or bonds, the impact can feel more exaggerated.

Market watchers also tie the latest pressure to broader economic conditions. Inflation has remained stubbornly above the Federal Reserve’s long-term 2% target, and the labor market’s recent signs of slowing have added uncertainty to an already fragile sentiment backdrop. For many investors, that’s a cue to shift away from riskier bets and into safer assets or cash.

And there’s a human element to all of this, too. Crypto markets are full of traders who jammed their positions with leverage or bought in during prolonged rallies. When prices start slipping, those leveraged positions get hit first. Forced liquidations then contribute to a sharper drop as positions close automatically to cover margin calls.

And, get this. It’s also part of a larger trend of shedding value that extends well beyond the past week.

Check this out. Analysts have noted that Bitcoin is roughly 40% below its peak from October 2025, a period when crypto markets were riding a strong wave of enthusiasm and record-setting prices. How wild, right? Over that same time frame, other traditional assets like the S&P 500 climbed and gold jumped — marking a clear divergence between speculative assets and more traditional stores of value.

Bitcoin has now fallen in each of the last four months — a streak not seen since the pandemic era — underscoring how persistent and structural this trend has become. Woah.

Part of the story is volatility — crypto has always been volatile. But another part of the story is liquidity and sentiment. When traders see risk rising elsewhere — in stocks, in foreign markets, in the macro picture — that nervousness eventually seeps into crypto, pushing traders to reallocate, reduce exposure, or simply step aside until there’s more clarity.

And while Bitcoin’s drop has been the headline, it’s telling that Ethereum and Solana both suffered heavier percentage losses over the same period. Ethereum’s broader blockchain ecosystem, decentralized finance applications, and smart contract use cases have made it a bellwether for risk appetite among crypto investors.

All of this reinforces that crypto markets are still deeply interconnected with broader investor psychology. When confidence rises, prices climb quickly. When uncertainty seeps in — whether from inflation trends, geopolitical issues, or macroeconomic unknowns — prices fall just as fast.

That doesn’t mean crypto is “dead.” Nope. Far from it. But, think smart, and only invest what makes you feel comfortable.