The global digital asset markets are facing renewed pressure as both cryptocurrencies and NFTs experience significant declines. Investors across asset classes are reacting to signals of potential further interest rate hikes, triggering a broad risk-off sentiment that has pulled down equities—and with them, crypto and NFT markets.
Bitcoin and Ethereum Extend Losses
Bitcoin (BTC), the leading cryptocurrency, has dropped below $34,000, hitting its lowest level in nearly four months—the weakest since January. This marks a year-to-date decline of approximately 30%, and a 50% drop from its all-time peak of $67,800 in November 2021.
Ethereum (ETH), the second-largest digital asset, has also struggled, falling below $2,500 with a 24-hour decline exceeding 3%.
According to data from CoinGecko, the total global cryptocurrency market capitalization has shrunk by over 2% in the past day, now sitting at $1.65 trillion. The synchronized downturn reflects growing investor caution amid macroeconomic uncertainty.
👉 Discover how market cycles influence crypto performance—explore real-time insights and trends.
NFT Market Contracts Sharply
The downturn isn't limited to cryptocurrencies. The NFT sector is also reeling, with major collections seeing steep drops in trading volume and floor prices.
Data from NFTGo.io reveals a grim picture:
- Otherdeed trading volume plummeted nearly 50% in 24 hours.
- Mutant Ape Yacht Club (MAYC) saw a 46% decline in volume.
- Azuki series NFTs recorded a 15.58% drop in trading activity. As of the latest data, Azuki’s floor price stood at 20.95 ETH, down 4.2% in one day.
- Most notably, the Bored Ape Yacht Club (BAYC) floor price broke below 100 ETH, now at 96 ETH—a 13.67% drop.
These figures highlight weakening demand and declining confidence in high-profile NFT projects, which were once seen as flagship assets in the Web3 ecosystem.
Mayer Multiple Confirms Bear Market Conditions
Glassnode, a leading blockchain analytics firm, recently analyzed market conditions using the Mayer Multiple, one of the most respected long-term indicators in the Bitcoin community.
The Mayer Multiple is a simple ratio of Bitcoin’s current price to its 200-day moving average. Despite its simplicity, it has historically provided reliable signals for identifying market tops and bottoms.
Glassnode identifies a Mayer Multiple of 0.8 as a threshold for "deeply undervalued" conditions—a level that has historically been breached in only about 15% of Bitcoin’s trading history. With the 200-day average currently at $47,275, a 20% discount brings the target to **$37,820**.
While Bitcoin is already below this level, suggesting it may have entered the latter half of the bear market, historical cycles indicate that recovery could still be months away. Sustained capital inflows and strong buying pressure are yet to emerge—key prerequisites for a true market bottom.
Expert Outlook: Further Downside Possible
Carter Braxton Worth, founder of Worth Charting, warns that Bitcoin could fall another 13%, potentially testing the **$30,000** mark. This level aligns with a key support zone from June 2021, when Bitcoin hovered around $29,000.
With BTC recently dropping $1,200 to $34,600, technical analysts are watching this psychological and historical level closely. A break below could trigger further selling pressure.
One of the biggest risks lies in shifting macroeconomic dynamics. As the Federal Reserve continues to raise interest rates, traditional fixed-income assets become more attractive. In this environment, Bitcoin—often labeled a "risk-on" asset—is increasingly treated as a speculative holding that investors may abandon during times of uncertainty.
👉 Stay ahead of market shifts with tools that track real-time crypto movements and investor behavior.
Institutional Absence: A Structural Weakness
Kevin O'Leary, investor on the show Shark Tank, pointed out a critical structural gap in crypto adoption: the lack of sovereign wealth fund participation.
According to O'Leary, Bitcoin remains confined within a narrow ownership base—primarily retail investors, high-net-worth individuals, hedge funds, and specialized crypto funds. But no sovereign wealth fund holds Bitcoin in any meaningful capacity.
This absence is significant. Sovereign wealth funds act as stabilizing forces during market downturns. Their long-term investment horizons and massive capital pools can absorb volatility and provide foundational demand.
“If just 1% of sovereign wealth funds allocated to Bitcoin,” O'Leary noted, “the market dynamics would shift dramatically.” Without that support, crypto markets remain vulnerable to sentiment swings and lack a true floor during sell-offs.
Core Keywords
- cryptocurrency market
- NFT market
- Bitcoin price
- Ethereum price
- Mayer Multiple
- bear market
- floor price
- trading volume
Frequently Asked Questions (FAQ)
Q: Why are both crypto and NFT markets falling at the same time?
A: Both markets are driven by investor sentiment and liquidity. When macroeconomic conditions tighten—such as rising interest rates—investors pull back from speculative assets like crypto and NFTs simultaneously. Additionally, many NFT buyers use cryptocurrency as their primary payment method, so downturns in BTC and ETH directly affect NFT demand.
Q: What does the Mayer Multiple tell us about Bitcoin’s future?
A: A low Mayer Multiple (below 0.8) suggests Bitcoin is deeply undervalued historically. However, being undervalued doesn’t mean an immediate rebound. Past cycles show that markets can remain depressed for months before recovery begins. It’s a signal of potential long-term opportunity—not short-term reversal.
Q: Are NFTs still a good investment during this downturn?
A: For long-term believers in digital ownership and Web3 ecosystems, current price drops may present entry opportunities. However, investors should focus on projects with strong communities, utility, and transparent roadmaps. Speculative or hype-driven NFTs are most vulnerable during bear markets.
Q: Can Bitcoin recover without institutional or sovereign investment?
A: While retail and hedge fund activity can drive rallies, sustainable growth typically requires broader institutional adoption. Sovereign wealth fund participation would signal legitimacy and attract long-term capital. Until then, Bitcoin may continue experiencing volatile cycles.
Q: How do rising interest rates affect cryptocurrency prices?
A: Higher interest rates increase the appeal of safer assets like bonds and savings accounts. As yields rise, investors often shift away from riskier assets—including cryptocurrencies—reducing liquidity and downward pressure on prices.
Q: What is floor price in the context of NFTs?
A: The floor price is the lowest price at which an NFT from a particular collection is listed for sale on the market. It serves as a key indicator of a project’s health and market confidence.
👉 Learn how to navigate bear markets with data-driven strategies and secure trading tools.