Crypto's Rough Week Has Dragged on Bitcoin, Altcoins, DATs and Stocks. What's Next?

Market Overview - The price of bitcoin experienced a significant drop, nearing $60,000, marking one of its worst single-day declines in the past decade, although it rebounded to around $71,000 later in the week, with overall losses tracking in double digits [2] - Other cryptocurrencies, including altcoins like ether and solana, saw losses of approximately 25%, while Hyperliquid's native token was an exception, gaining about 11% [3] Company Impact - Shares of major crypto-related companies such as Coinbase Global (COIN), Robinhood (HOOD), and Circle (CRCL) also faced double-digit pullbacks, although they showed signs of recovery [5] - Gemini, a crypto exchange founded by the Winklevoss twins, announced plans to close overseas operations and reduce its workforce by 200 as part of a restructuring effort [5] Investor Sentiment - The Crypto Fear and Greed Index remains at "extreme fear" levels, indicating heightened anxiety among investors regarding digital assets [6] - Analysts have noted a correlation between bitcoin's recent performance and that of software stocks, contributing to concerns about the future of cryptocurrencies [7] ETF and Investment Trends - Bitcoin ETFs experienced approximately $1.25 billion in net outflows over three days, with $434 million occurring in a single day, although over 90% of assets under management in these funds have not been sold [8] - The average purchase price for bitcoin held in major ETFs is reported to be around $90,000, indicating that ETF holders are facing approximately $15 billion in unrealized losses [9]