Crypto Bitcoin Price Crash: The cryptocurrency market is in a state of complete collapse. In fact, this collapse is so deep that just 22 days ago with more than a staggering $900 billion was lost in digital assets only due to a worsening investor sentiment. Bitcoin is being the most dominant cryptocurrency has led this plunge into a bear market, with Ethereum, XRP, Solana and Avalanche all succumbing to this sell-off and the market is in a choppy, uncertain state.
BTC Crypto Bitcoin Price Crash
Bitcoin, in particular, has been significantly affected after reaching an all-time peak at around $90,000, its price has now declined by about 23%. The price now oscillates in the $70,000 to $71,000 region with Ethereum has also not escaped this descent and its price has declined by almost 32%. Now, its price oscillates in the $2,070 range from its respective highs at around $3,050.
Crypto Market Today: Leveraged Positions Wiped Out in Surge of Liquidations
Such a price drop led to a series offorced liquidations that continued to affect the market negatively. In a matter of less than a day, long positions equating to over $320 million were erased with overall leveraged investments exceeding $755 million in losses. These plummeting losses in the overall crypto space were said to have exceeded $833 million, according to Coingape.
Altcoins Tumble Amid Broad Market Downturn
The downtrend has similarly affected the alt coins while XRP, Solana and Avalanche plummeted, showing the direction of the entire trend. It has dropped by 12% to trade above $1.40 and similarly, the price of Solana has dropped to $92, which was the price in 2024 with Avalanche reaching the significant support of $9.
XRP Falls Under $1.45 as Open Interest Declines
XRP continues to decline as open interest plummets to a level not seen since November 2024 and this fall in open interest indicates that there are fewer derivatives traders and less speculative interest in the market, thereby causing an increase in the market force, particularly in such huge sell-offs.
Large Bitcoin Sell-Offs Heighten Market Anxiety
Large BTC withdrawals and sales are fueling a lot of fear in the markets. For instance, last week, in the Bhutan sold an amount of $22.4 million in Bitcoin after its assets fell by more than 70% from a peak of $1.4 billion in its cryptocurrency reserves. When markets are already not doing well, large withdrawals are likely to have a ripple effect on the space, causing others to sell their assets, be it individuals or institutions and the Crypto Fear & Greed Index has been pushed down to 11.
Why is Bitcoin Crashing?
A few factors are contributing to the current downtrend, with sharp selling, ETFs and liquidations serving as the immediate triggers with the macro concerns of dwindling prospects of rate cuts in the US and prevailing market uncertainty are keeping the downtrend alive. The resolution of the prevailing political crisis, such as the government shutdown in the US, did not have a positive effect on the market, highlighting its sensitivity to interest rates.
FAQs
Why is the crypto market crashing right now?
A combination of forced liquidations, ETF outflows and growing macroeconomic concerns is driving the sell-off.
Why is Bitcoin Price Falling right now?
Bitcoin faces pressure from leveraged selling, ETF withdrawals and investor risk aversion.
Solana Price Hits Lowest Level Since 2024
Solana has slipped to near $92, highlighting the vulnerability of high-growth altcoins amid market stress.
Avalanche Tests Long-Term Support Near $9
Avalanche’s price action shows prolonged weakness and testing support levels established months ago.
XRP Price Drops Below $1.45 as Open Interest Slides
Reduced derivative activity for XRP coincides with its steep decline and indicating weaker speculative demand.
