Why Did Crypto Drop This Week? Check Out the Factor Analysis!

Bittime - The crypto market again experienced major pressure in the last week of September 2025.Bitcoin (BTC) had dropped to the level$111.600, whereas Ethereum (ETH)corrected downwards$4.000. 

On the weekly chart, BTC is already down more than 4%, while altcoins are recording deeper losses.

This correction raises questions for investors:Why is crypto down this week?This article will discuss the causal factors, market impact, BTC and ETH tokenomics, and future price predictions.

Factors Causing Crypto to Drop This Week

1. Political Risks in the United States

One of the main triggers isthreat of government shutdown in the USon October 1, 2025. Congress failed to reach a short-term funding deal, creating significant uncertainty in global markets.

The impact:

• Crypto investors reduce exposure to risky assets.
• Bitcoin price fell below psychological support level.
• Ethereum is also under pressure because it is sensitive to capital outflows.

2. Surge in Liquidations in the Futures Market

According to CoinGlass data, more than127,000 trader positionsliquidated in the last 24 hours with a total loss of more than$400 million. The majority come from positionslong, indicating the market was too optimistic before the correction occurred.

3. Macro Pressure & Traditional Markets

The US stock market also weakened. The indexS&P 500fell 0.3% in a single day, reinforcing signs that global investors are taking a risk-off stance. This further pressures crypto, which is known for its high volatility.

Read Also: How to Buy Bitcoin Safely in Jakarta: A Complete Guide for Beginners

Impact on Bitcoin & Ethereum

• Bitcoin (BTC):At the time of writing, BTC is hovering around$111.697Despite the correction, Bitcoin still holds the largest market capitalization and is considered a market "resistance."
  
   
• Ethereum (ETH):ETH tries to hold at the level$4.000, which acts as important support. If it breaks below, a deeper correction is possible.

Mid- and small-cap altcoins are feeling the pressure even more, as investor funds move into more liquid assets.

Technical Analysis & Price Prediction

Bitcoin (BTC)

• Strong support: $111.000
  
   
• Nearest resistance: $115.500
  
   
• If the $111,000 support breaks, BTC could head towards$108.000However, if it holds, there's a chance of a rebound to $116,000.

Ethereum (ETH)

• Psychological support: $3.950
  
   
• Important resistance: $4.200
  
   
• If ETH fails to hold $3,950, a correction to $3,700 is likely. Conversely, if it stabilizes, ETH could regain momentum toward $4,400.

Read Also: When Is the Best Time to Buy Ethereum (ETH)? Here's a Complete Analysis

Long-Term Prospects

Despite the crypto market's pressure this week, long-term fundamentals are still positive:

• Institutional adoption continues to increase.
  
   
• ETF Bitcoin spotremains a major catalyst.
  
   
• Ethereum Layer-2growing rapidly, increasing the utility of ETH.

With a combination of technical and fundamental factors, this correction could be a buying opportunity for long-term investors who believe in the future of crypto.

What to Do When the Market Drops?

For investors and traders, a sharp correction like this week's can be frightening. However, there are several strategic steps to consider:

1. Stay Calm and Avoid Panic Selling
   Selling assets in panic often leads to unnecessary losses. Remember that volatility is a natural part of the crypto market.
   
    
2. Portfolio Evaluation
   Re-examine your asset allocation. Is there too much in high-risk altcoins? Diversifying into more stable assets could be a wise move.
   
    
3. Take Advantage of Dollar-Cost Averaging (DCA)
   A strategy of buying gradually at each price drop can help lower the average accumulated price.
   
    
4. Monitor Key Support and Resistance
   Use technical analysis to identify key levels. For example, BTC's support at $111,000 and ETH's at $4,000 are important levels to monitor.
   
    
5. Focus on the Long Term
   Many successful investors actually profit by daring to hold quality assets during bear market phases.

Read Also: Why Did Crypto Drop Today? An Analysis of the Causes, Impact, and Investor Strategies

Conclusion

This week's correction reaffirms the crypto market's highly influenced global factors. From threats of a US shutdown to massive liquidations, investors are urged to remain vigilant.

However, with the right strategies—such as keeping calm, diversifying, and utilizing DCA—this downturn can be an opportunity, not just a threat.

How to Buy Crypto on Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Also, visit the Bittime Blog for interesting updates and educational information about the crypto world. Find reliable articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your crypto knowledge.

FAQ

Why is crypto down this week?

Due to macro factors such as the threat of a US government shutdown, a surge in futures liquidations, and global stock market pressures.

Why is Bitcoin price down?

BTC dropped to $111,600 due to panic selling and massive liquidation of long positions.

How is Ethereum price this week?

Ethereum briefly fell to $3,996 but is trying to hold on to the psychological support of $4,000.

What are Bitcoin and Ethereum tokenomics?

Bitcoin has a limited supply of 21 million, while Ethereum has a burn & staking mechanism that reduces the liquid supply.

What is the future price prediction for crypto?

BTC is expected to move in the range of $108,000–$116,000, while ETH has the potential to move in the range of $3,700–$4,400, depending on macro and technical sentiment.