Crypto's Worst Week Since July 2024 Deepens as Bitcoin, Ether Near Critical Price Levels

The crypto market is facing its worst weekly performance since July 2024, driven by a combination of security exploits, capital rotation, and declining liquidity. Bitcoin lost nearly 15% this week while ether fell more than 17%, signaling a significant shift in market sentiment.

The pressure is coming from several distinct directions. In the altcoin sector, zcash crashed more than 30% after a security researcher uncovered an exploit that could have minted unlimited tokens. This event dragged rivals monero and dash down with it, compounded by Arthur Hayes disclosing that his firm sold its entire ZEC position.

Simultaneously, a shift in capital is underway. Michael Saylor, Executive Chairman of Strategy (MSTR), attributed the slide to capital rotation following a series of artificial intelligence IPOs in the U.S. This rotation coincides with a visible drop in market demand; CryptoQuant notes that spot trading volume fell to $679 billion in April, the lowest monthly level since October 2023.

Ether is now approaching $1,420, the level it bounced from in April 2025 before a four-month rally to record highs. A break below this support would move the asset toward 2022 bear market territory, where prices dipped below $900.

The derivatives market is reflecting this growing instability through clear deleveraging. Bitcoin open interest dropped 15% to $17 billion, as funding rates flipped from negative to flat across multiple venues. At Deribit, the annualized rate dropped to -15%, a reversal from the prior positive regime. Furthermore, the three-month annualized basis fell to 2.7% from 2.9% last week, confirming a pullback in institutional risk appetite.

The current price action suggests that the market is no longer just correcting, but is actively searching for a new floor. Watch the $1,420 level for ether; a failure to hold that support will determine if the market is entering a sustained period of decline.