The crypto market cools down: Why Bitcoin and Ethereum are falling after weeks of euphoria.

The crypto market has seen a 3,5% correction in total market capitalization over the past 24 hours. Macroeconomic factors and profit-taking are tempering the bullish momentum experienced by Bitcoin and Ethereum.

After weeks of unstoppable enthusiasm and seemingly endless record highs, the cryptocurrency market has taken a breather. In the last 24 hours, the sector's total market capitalization has decreased by approximately 3,5%. This movement, far from being an alarming drop, is perceived as a moderate and necessary correction, influenced primarily by macroeconomic factors and investors deciding to take profits after recent gains.

Bitcoin and Ethereum, the two undisputed stars of the crypto universe, have registered adjustments toward important technical levels. These points are being closely watched because, if crossed, they could change market perception and mark a new bearish phase. However, for now, this "cooling off" is considered merely a pause in a bullish cycle that has generated much optimism in recent weeks.

Bitcoin and Ethereum: Resilience Amid Correction

Bitcoin (BTC) remains at around $112.000, having recently reached $124.457, setting a new all-time high. Although the pullback is evident, the leading cryptocurrency maintains a solid structure, according to institutional analysts. Selling pressure has increased, but it has not been enough to break relevant support zones. Ethereum (ETH), meanwhile, is trading near $4.100, also with a slight correction, but without losing levels that experts consider strategic to maintain momentum.

Cryptocurrency analyst Ali Martinez highlights that Bitcoin has rejected the $122.000 resistance level, creating a technical deviation that could herald deeper pullbacks. However, Support at $112.000 remains a key reference. 

From his X account, Martinez noted that a bounce here, at $112.000, could restore Bitcoin's bullish momentum. However, he also commented that a breakout could accelerate the correction towards $108.000 per BTC. This readingAlthough technical, it doesn't imply a change in narrative. Rather, it reflects the natural dynamics of a market that has been absorbing weeks of strong demand.

As for Ethereum, the cryptocurrency has shown lower relative volatility, reinforcing its role as a benchmark asset for institutional strategies. Unlike Bitcoin, which has shown more marked fluctuations this month, Ethereum maintains an upward trend, with a nearly 9% increase in value. However, as Martínez pointed out, the $4.150 level represented a critical point for this digital currency, a threshold that could define its next move in the market.

In this context, both cryptocurrencies, BTC and ETH, continue to be watched as indicators of general sentiment, and their behavior in the coming days will be key to determining whether this correction becomes a healthy pause or a more prolonged consolidation phase.

Understanding the Crypto Market Correction: Macroeconomic Factors and Profit-Taking

The 3,5% correction in total crypto market capitalization cannot be understood without considering the macroeconomic environment. In recent days, traditional markets have shown signs of caution in the face of mixed inflation data and monetary policy expectations. This climate has also impacted digital assets, which, while they have gained narrative autonomy, remain sensitive to global liquidity movements.

Profit-taking also appears to be another determining factor. After weeks of bullish momentum, many traders have decided to close positions, especially in assets that had recorded double-digit gains. This behavior does not imply a massive exit from the market, but rather a tactical rotation that usually accompanies consolidation phases. In this sense, liquidations in derivatives have increased, suggesting adjustments rather than capitulation.

El Crypto Fear & Greed Index has dropped slightly but remains in the optimistic zone. This indicates that, despite the correction, the overall sentiment remains constructive. Institutional readings agree that there are no signs of systemic stress or deterioration in the cryptoasset adoption narrative. Rather, a pause is observed that could open up opportunities for strategic profiles, especially those seeking entries at more attractive levels.

In short, the current decline in Bitcoin, Ethereum, and other cryptocurrencies is due to a combination of external factors and internal market dynamics, but there are no elements that suggest a change in trend, but rather an adjustment phase that could strengthen the structure of the ongoing bullish cycle.

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Institutional reading: consolidation within a bullish cycle

From an institutional perspective, the current correction is interpreted as a consolidation phase within a broader bullish cycle. Adoption, volume, and activity metrics on blockchain networks have not shown significant deterioration, reinforcing the idea that the pullback is due to tactical rather than structural dynamics. In this regard, crypto fund managers maintain a constructive view, focused on medium- and long-term horizons.

Therefore, although the momentum of cryptocurrencies such as Bitcoin and Ethereum has moderated, there are no signs of capitulation or loss of institutional confidence. In fact, some funds and companies have taken advantage of the correction in BTC and ETH to accumulate positions, suggesting that the market remains perceived as attractive, even in times of adjustment.

Furthermore, activity in derivatives and options has shown an increase in hedging strategies, indicating that traders are managing volatility without abandoning bullish positions. This sophistication in risk management is a sign of maturity in the ecosystem, which no longer reacts abruptly to moderate corrections.

Consequently, the current session does not represent a shift in the crypto narrative, but rather, for now, a technical pause that could strengthen the ongoing cycle. Attention now turns to how the leading assets will react at their respective support levels. If a rebound is confirmed, the market could regain momentum more solidly. If the correction deepens, a new chapter of analysis will open, but always within the framework of natural evolution in highly volatile markets.