Daily Crypto Signals: Bitcoin Holds $60K as Ethereum Faces $1,736 Risk in a Defensive Crypto Market

Quick overview

Stablecoins hit a record $315 billion in supply as investors flee volatility, while Bitcoin BTC/USD trades range-bound between $60K–$73K and Ethereum ETH/USD struggles below critical $2,150 resistance. Regulatory momentum builds with the CLARITY Act advancing and Alabama granting DAOs legal status.

Crypto Market Developments

The cryptocurrency market appeared to be retreating in the first quarter of 2025, but not in a panic. According to data from CEX.io, investors mostly switched to stablecoins as a defensive move, driving the total supply of stablecoins to a record $315 billion, up about $8 billion over the prior quarter. In Q1, stablecoins made up 75% of all cryptocurrency trading volume, which is the biggest percentage ever recorded and surpasses even the top of the 2022 bear market. A slight but significant change in investor preferences within the stablecoin field itself was reflected in USDC’s increase in market share and USDT’s slight decline.

Washington is quietly becoming more optimistic about regulations. Paul Grewal, the chief legal officer of Coinbase, told Fox Business that the US Digital Asset Market Clarity Act is “moving toward” a Senate Banking Committee markup hearing and that lawmakers are “very close to a deal.” The primary cause of contention is still whether stablecoin issuers are permitted to give yield, a feature that US banks vehemently reject out of concern about deposit flight. On July 17, 2025, the House passed its version of the CLARITY Act; however, since January, when Banking Committee Chair Tim Scott postponed a scheduled markup, Senate action has stagnated.

In the meanwhile, Alabama signed the Decentralized Unincorporated Nonprofit Association (DUNA) Act into law, making it just the second US state after Wyoming to offer legal status to decentralized autonomous organizations (DAOs). Miles Jennings, head of policy at a16z Crypto, welcomed the law, which passed the Alabama House 82–7, as crucial to the future of cryptocurrency since it provides DAOs with limited liability protections and the legal framework to contract, govern, and operate in the real world.

Bitcoin Hangs on to $66,000 Support

Bitcoin is barely hanging on. Despite a difficult macroeconomic backdrop that includes oil prices at their highest levels since 2008, an ongoing US-Israel-Iran military war, and an S&P 500 down nearly 4% so far this year, Bitcoin has managed to withstand a further collapse, trading between $60,000 and $73,000. Near the $60,000 mark, which is currently a crucial support floor, buyers have continuously intervened. Although that resistance is noteworthy, professionals caution that it might not be sufficient. Since February 8, the daily chart has been displaying a bearish bear flag pattern, with each advance toward overhead trendline resistance being decisively rebuffed. In order for bulls to take back control, Bitcoin must maintain a multi-day close over $76,000, which would essentially disprove the bearish scenario.

The negative hazards are actual and measurable. Aksel Kibar, a chartered market technician, has identified $52,500 as a possible target if the $60,000 support falls. This prediction is consistent with Hyblock’s liquidation heatmap data, which displays a dense cluster of leveraged long positions at risk between $63,000 and $65,000. There is a liquidity gap below there, and the next significant support zone won’t appear until between $56,000 and $57,500. The fact that Bitcoin’s total open interest is still below $20 billion, a level last observed in early February when BTC was trading close to $79,000, adds to the worry. This indicates that traders are still hesitant to make directional bets with confidence. The most likely short-term course for Bitcoin appears to be horizontal consolidation unless a significant catalyst appears.

Can Ethereum Head Lower Under $2,000?

Ethereum is trapped in an annoying and unstable range. Over the last two months, the $2,150 level has rejected rallies no fewer than seven times, serving as a ceiling that bulls have repeatedly been unable to breach. Technically positive, the overall price structure exhibits a pattern of higher highs and higher lows, but sustained selling pressure and waning macro sentiment, especially in light of President Trump’s remarks raising tensions with Iran, undermine this optimism. ETH futures sell activity on Binance increased by $1 billion in the hour after those statements, highlighting how vulnerable the altcoin is to geopolitical risk. In order to consolidate the trend, bulls must regain the $2,150–$2,400 area, where Ethereum is presently trading just above $2,048.

The liquidation heatmap presents a cautious and pessimistic picture. There is a skew that supports negative pressure without yet indicating crowded short positions, with about $2.4 billion in long liquidations grouped near $1,845 and $1.7 billion in short liquidations near $2,255. Trader focus will move to $1,900, which corresponds with comparable lows established in early March, if ETH loses $2,150 convincingly. The annual low of $1,736 would be shown by a breakdown there. On the upside, a clear break above $2,400, where there isn’t much resistance, might go to $2,800, which hasn’t seen much trading action in the previous six months. Ethereum is currently stuck, waiting for either a significant change in demand or a macro calm to break the impasse.

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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