Major Cryptocurrencies Face Market Pressure
The cryptocurrency market is under significant pressure, with major digital assets like Bitcoin and Ethereum leading a broader market downturn. Over the past 24 hours, the total market capitalization has fallen to around $2.54 trillion, experiencing a 3% drop, according to recent market data.
Bitcoin’s Key Support Level Breached
Bitcoin dropped below a critical support level at $75,000, triggering automated sell-offs and liquidations across popular trading platforms. The leading cryptocurrency, which accounts for nearly 60% of the total market valuation, saw over $240 million in liquidations within a day. This steep decline has observers closely watching whether Bitcoin can maintain support in the $72,000–$74,000 range. A breach below this level could intensify the sell-off, while stabilization could lead to a short-term rebound.
Ethereum Drops Sharply Amid Negative Sentiment
Ethereum experienced an even sharper decline than Bitcoin, shedding nearly 4% in 24 hours and almost 28% over the past week. Negative sentiment surrounding the Ethereum network continues to push traders toward short positions. Funding rates on Ethereum derivatives remain negative, highlighting the market’s bearish outlook. Currently, Ethereum is hovering near a key support zone between $2,000 and $2,300, with further declines potentially leading to more liquidations.
XRP and Large Altcoins Stumble
XRP has not been spared from the market’s decline, dropping around 20% over the past week and trading close to $1.55. Analysts highlight that the sell-off is broad-based, affecting Layer 1 tokens, DeFi projects, and other high-beta altcoins. Many traders are significantly reducing exposure as market-wide risk appetite declines.
Extending Fear Across Crypto and Traditional Markets
Market indicators such as the Fear and Greed Index have plunged into the “extreme fear” zone, reflecting the pessimism dominating both cryptocurrency and traditional risk markets. Bitcoin’s performance continues to be highly correlated with U.S. stock indices, including the S&P 500, as macroeconomic uncertainties weigh heavily on speculative asset classes.
What to Watch in the Coming Days
As cryptocurrencies move closer to critical support levels, the market awaits potential policy changes that could impact speculative assets like Bitcoin and Ethereum. Investors are advised to remain cautious and to perform thorough research before making any significant financial decisions in this volatile environment.
Explore Useful Tools
If you’re looking to stay updated on the market’s movements, consider leveraging tools like the TradingView Crypto Dashboard to analyze charts and trends in real time. This platform offers valuable insights for crypto traders of all levels.
