I just saw Bitcoin drop again to around $71,500 this weekend after trying to break out at $70,000. Turns out, risk sentiment in the US stock market is still hot and not decreasing, so crypto is also under pressure. The S&P 500 fell 0.4%, Nasdaq dropped 0.3%, and the worst was the Dow plunging 1.1% — crypto always amplifies these movements, so Bitcoin declined 1.78% in the past 24 hours.

Interestingly, altcoins fell even more. Solana dropped 2.20%, Ether declined 1.27%, Dogecoin fell 1.80%. Although early in the week there was hope with strong inflows into spot Bitcoin ETFs, macro pressures are greater. Producer inflation rose 0.5% more than expected, and there’s news of massive layoffs at Block Inc that’s causing panic about AI replacing jobs.

What’s scary is that USDT reserves on exchanges have continued to decline from $60 billion to $51.1 billion over the past two months. If it drops below $50 billion, it could trigger massive sell-offs. Bitcoin has been stuck in the $60K-$70K range since February, so now the question is whether it can hold the lower support or will it break through even further.