The cryptocurrency market is under renewed pressure, with top assets like Bitcoin (BTC), Ethereum (ETH), and XRP struggling to find upward momentum. Weak sentiment across global markets, recession concerns, and rising trade tensions are dragging crypto prices lower, leading investors to tread cautiously.

BTC Price Dip Reflects Market Uncertainty

Bitcoin recently tested support just above the key $100,000 level after dropping from its all-time high of $111,980 reached on May 22. While BTC managed to bounce back slightly to around $103,477 on June 6, market confidence remains fragile.

The BTC price dip follows broader weakness in the global financial markets. Investors are growing increasingly concerned about potential recession risks in the United States, which have been reignited by new tariff threats and political uncertainties.

Although Bitcoin found temporary support near the 50-day Exponential Moving Average (EMA) at $100,935, it continues to trade below key resistance levels. Analysts suggest that a sustained recovery will only be possible if BTC breaks past $105,000 and retakes higher ground above $106,000.

Altcoins Under Pressure: ETH and XRP Struggle to Hold Support

Altcoins are also feeling the heat from bearish sentiment. Ethereum (ETH) is currently trading near $2,474, after nearly losing support at $2,382. A slight bounce has helped ETH stay afloat for now, but a strong push above the 200-day EMA at $2,460 is needed to confirm a short-term recovery.

For ETH to regain momentum, traders are watching for a breakout above the consolidation zone around $2,780. If successful, Ethereum could aim for the psychological resistance at $3,000. However, current signals suggest the path to recovery may remain slow and uncertain.

Meanwhile, XRP is attempting to rebound from the 200-day EMA support near $2.08 and is trading at around $2.14. A slight upward trend in the Relative Strength Index (RSI) suggests weakening bearish pressure, but significant resistance lies ahead at $2.26, where both the 50-day and 100-day EMAs converge.

Traders remain cautious, as a bearish SuperTrend signal issued on May 30 hints at potential continued downside. A failure to hold current support could send XRP further below $2.08.

Recession Fears Reignite Crypto Sell-Off

The current downturn in crypto markets is closely tied to rising fears of a U.S. recession. A public fallout between President Donald Trump and Tesla CEO Elon Musk added fuel to investor concerns. Musk warned that the U.S. economy is at risk due to rising debt levels and higher interest payments, suggesting that Trump’s tariff policies could tip the country into a recession later this year.

Adding to the anxiety, a note from Mike Wilson, Chief U.S. Equity Strategist at Morgan Stanley, forecasted a mild recession, possibly triggered by another sell-off in U.S. equities during the summer or fall. However, Wilson noted that such a downturn could open the door for Federal Reserve rate cuts, which may eventually support a recovery in both stocks and crypto.

Bitcoin Dominance Rises as Altcoin Season Fades

Despite the overall market weakness, Bitcoin’s dominance in the total crypto market cap has increased. It now stands at 64.66%, up more than 4% since mid-May. This rise in dominance suggests that while altcoins are losing ground, Bitcoin remains the preferred asset for investors seeking relative stability.

The trend also implies that the expected altcoin season may be delayed further, as capital continues to concentrate in Bitcoin amid uncertain conditions.

What’s Next for Crypto Markets?

Market participants are now looking ahead to upcoming U.S. economic data, including nonfarm payrolls and unemployment numbers, for clues about potential Fed policy moves. A rise in unemployment could push the Federal Reserve to consider cutting interest rates, which might bring renewed interest to risk assets like crypto.

For now, however, crypto investors face a mixed outlook. While Bitcoin is holding a critical support zone, the recent BTC price dip reflects broader concerns. Ethereum and XRP remain in a fragile state, and without strong catalysts, recovery may take time.