The crypto market has experienced a severe downturn in the past 24 hours, with a total market decline exceeding 7%. Bitcoin plummeted below the critical $100K** threshold, Ethereum dropped under **$3,000, and altcoins like XRP and Solana faced double-digit losses. Bearish technical indicators and rising uncertainty have left the market on edge. But what’s fueling this crash? Below are the top three reasons behind the latest crypto selloff.
1. Bitcoin Drops Below $100K – Panic Selling Ensues
Bitcoin’s price fell below $100K**, hitting **$96K, with no immediate signs of recovery. If selling pressure persists, BTC could test lower support levels near $92K** and **$90K. This sharp decline has triggered widespread panic, leading to liquidations and forcing traders into defensive positions.
When Bitcoin struggles, the entire crypto market follows. Ethereum crumbled below $3,000**, with potential downside targets at **$2.6K and $2.4K. Meanwhile, XRP suffered the most severe blow, losing over 15% after being excluded from Hong Kong’s approved crypto list.
👉 Stay updated on crypto trends
2. Weak Market Sentiment and Technical Breakdown
Cryptocurrencies showed signs of exhaustion even before this crash. The recent rallies that propelled Bitcoin past $100K** and Ethereum toward **$3.5K led to profit-taking, intensifying sell pressure.
Technically, Bitcoin’s breakdown below $100K** triggered **stop-loss liquidations**, accelerating the downturn. Solana also dipped below **$200, plummeting 12% in a single day—proof that even resilient altcoins aren’t immune to this market-wide slump.
3. Traditional Markets Influence Crypto’s Decline
The crypto crash aligns with broader market struggles. Tech stocks are poised for a weak opening, potentially exacerbating crypto liquidations. As investors flee riskier assets, cryptocurrencies bear the brunt of the selloff.
This correlation with traditional finance suggests further downside risk for cryptos, especially if macroeconomic uncertainties persist.
What’s Next for Cryptocurrencies?
The short-term outlook remains bearish. If traditional markets continue to falter, cryptos may face another wave of selling. Bitcoin’s next critical levels are $92K** and **$90K, while Ethereum could slide toward $2.6K** and **$2.4K.
However, long-term analysts argue that crypto remains in a broader bull cycle. This downturn may simply be a correction before the next major rally.
👉 Explore crypto trading strategies
FAQs
Why did Bitcoin drop below $100K?
Bitcoin’s fall below $100K resulted from panic selling, technical breakdowns, and broader market weakness.
Will Ethereum recover soon?
Ethereum’s short-term outlook is bearish, with potential support at $2.6K. Long-term recovery depends on market sentiment and macroeconomic conditions.
Why was XRP hit harder than other altcoins?
XRP’s 15% drop was exacerbated by its exclusion from Hong Kong’s approved crypto list, amplifying negative sentiment.
How does the stock market affect crypto?
Crypto often correlates with traditional markets. Weak tech stocks can trigger risk-off sentiment, leading to crypto liquidations.
Is this a good time to buy the dip?
While some see this as a buying opportunity, caution is advised until market stability returns.
Are altcoins like Solana still a good investment?
Solana’s recent drop highlights its volatility, but long-term potential remains if the broader market recovers.