Bitcoin Reverses to Erase Year’s Gains as Deleveraging and Macro Headwinds Hit Crypto Markets

Digital asset markets reversed course as Bitcoin and Ethereum erased their year-to-date gains, signaling a pronounced correction after a period of renewed volatility. The move highlights ongoing sensitivity to liquidity and evolving macro risks.

Dragonfly’s Rob Hadick points to a deleveraging phase rooted in liquidity stress, fragile risk controls, and weak oracle/leverage mechanisms, a mix that has intensified losses and injected lasting uncertainty into pricing dynamics.

Tribe Capital’s Boris Revsin frames the episode as a ‘leverage washout’ with cascading effects across risk assets, illustrating how leveraged positions can transmit shocks through the broader market.

The macro backdrop has shifted toward a less accommodative stance, with fading near-term rate-cut prospects, persistent inflation, and a softer labor market adding headwinds. Robot Ventures’ Anirudh Pai notes weakening Citi Economic Surprise signals and inflation hedges; CMS Holdings’ Dan Matuszewski adds that fresh capital inflows remain scarce outside specialized entities.