Fear Grips Crypto Markets, but Signs of Desilience emerge

After a bruising week of selling, digital assets are showing the first hints of stability.

While market sentiment remains deeply negative, economist Alex Krüger argues that fear itself could mark the beginning of a recovery phase.

According to Krüger, the wave of liquidations seen in Bitcoin and Ethereum has already shaken out much of the speculative leverage. That clearing effect often leaves the door open for stronger hands to step in, allowing altcoins to steady earlier than expected. In past cycles, such capitulation events have frequently served as turning points, where weakness creates the conditions for renewed strength.

Still, Krüger isn’t calling for a euphoric rally this year. He cautions that liquidity is constrained and risk appetite is limited, making a blow-off top unlikely in 2025. One possible outlier, he noted, is Solana, which continues to attract attention from digital asset treasuries and institutional players. That steady demand could help the token outperform its peers in the near term.

The real catalyst, however, may come from outside crypto. All eyes are on the Federal Reserve’s mid-September meeting, where a modest rate cut is expected. Krüger sees continued volatility until then, with sharp swings on both sides.

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