Cryptocurrency Markets Experience Turbulent Week Amid Macroeconomic Shocks

Cryptocurrency markets experienced a tumultuous week, with bitcoin experiencing a sharp decline in value due to macroeconomic shocks. The asset began Monday at $67,500 before plummeting to $64,000 overnight. By Tuesday, the price had reached a local trough near $62,000, but rebounded later in the day.

The decline was linked to various macroeconomic factors, including unrest in Mexico and a decline in US pending home sales index. Pressure on the asset was compounded by an increase in US import tariffs from 10% to 15%. The price continued to fluctuate throughout the week, with another headwind coming from a US and Israeli strike on Iran.

Despite this volatility, spot ETFs backed by bitcoin and Ethereum recorded net inflows of $787m and $80m, respectively. Total crypto market capitalisation stands at $2.37trn, with BTC dominance at 56.1% and ETH at 10.1%. The Crypto Fear and Greed Index rose to 14, although it briefly dipped to 5.

A theory has emerged suggesting that investment firm Jane Street may be manipulating bitcoin prices. According to the conjecture, since early November 2025, the company has been systematically selling bitcoin at 10:00 ET to depress the price for ETF purchases. However, experts have disputed this claim, with some arguing it is based on a misunderstanding of how exchange-traded funds work.