The cryptocurrency market is in turmoil again! Over $170 billion has been wiped out in just 24 hours, leaving investors wondering—is this a golden buying opportunity or a warning sign of worse to come?
With Bitcoin, Ethereum, XRP, and Solana all experiencing sharp declines, let’s break down what’s happening, why prices are crashing, and whether these top cryptos can recover.
This market meltdown wasn’t just a random dip—it was fueled by a combination of factors that sent shockwaves through the industry.
Regulatory Uncertainty – The crypto world is once again on edge due to increased scrutiny from U.S. regulators. Stricter rules, possible bans, and delays in ETF approvals are keeping institutional investors at bay.
Macroeconomic Factors – The upcoming U.S. Consumer Price Index (CPI) report has traders nervous. If inflation data comes in higher than expected, the Federal Reserve could keep interest rates high, which typically hurts risky assets like crypto.
Mass Liquidations – More than $1 billion in Bitcoin long positions were liquidated, along with $230 million in Ethereum longs. These forced sell-offs added fuel to the fire, accelerating the crash.
Altcoin Weakness – Ethereum ETF outflows are increasing, signaling a lack of institutional demand. Meanwhile, Solana was hit by a massive memecoin scam, wiping out $4 billion in market value.
With all these factors at play, it’s no surprise that the market is in panic mode. But the big question remains—is this just another bump in the road, or the start of a deeper correction?
Bitcoin (BTC) has plunged another 3.5%, dropping to the $80,000 level amid growing market uncertainty ahead of this week’s U.S. Consumer Price Index (CPI) data release. With BTC facing strong rejection at $92,500, the leading cryptocurrency has extended its weekly losses to over 11%.
Bitcoin Price Prediction: Can It Rebound to $128,000?
Market analysts note that over $1 billion in BTC long positions were liquidated, showcasing intense volatility. However, historically, such sentiment lows have often preceded market bottoms.
Support: If BTC holds above $75,000, it could stabilize and regain bullish momentum.
Resistance: Reclaiming the $84,000 level as support could pave the way for a surge to a new all-time high of $128,000.
Ethereum (ETH) continues to face selling pressure, plunging below $2,000 today. ETH has lost over 10.3% in the past week, extending its year-to-date losses to a staggering 46.83%.
Crypto analyst Ali Martinez warns that ETH is breaking down from a parallel channel, indicating further downside risk. If Ethereum fails to hold support, it could crash another 75%, reaching $1,250.
Bearish Signs: ETF outflows have surged, and long positions worth over $230 million were liquidated, signaling weakening investor confidence.
Bullish Signals: Despite recent losses, Ethereum whales have accumulated 330,000 ETH in the past 48 hours, while 600,000 ETH has been withdrawn from exchanges—both signs of long-term holding.
While short-term sentiment remains bearish, long-term accumulation by major investors suggests a potential recovery ahead.
XRP saw a sharp 4.4% decline after former U.S. President Donald Trump reversed his stance on creating a national Bitcoin reserve. The sudden shift dampened hopes that XRP could play a key role in future digital asset reserves, leading to a sharp market cap decline.
Ripple Price Prediction: Can XRP Reach $5?
Crypto analyst Ali Martinez highlights a head-and-shoulders pattern, typically signaling further downside. However, if XRP maintains support at $2 and breaks above key resistance levels, it could trigger a strong rally toward $5.
A potential XRP Spot ETF approval could attract institutional investors.
Ongoing Ripple vs. SEC negotiations may impact XRP’s long-term outlook.
If market sentiment turns positive, XRP could see rapid gains.
Solana (SOL) has also faced a brutal sell-off, with prices hovering between $125 and $110. Over $26.55 million in SOL trades were liquidated in the past 24 hours, mostly from overleveraged long positions.
Adding to the chaos, Solana was hit by one of the biggest memecoin scams in history. The Libra token, endorsed by Argentine President Javier Milei, turned out to be a rug pull, draining $107 million and wiping out $4 billion in investor funds.
Solana is forming a double bottom pattern on the daily chart. If SOL get $120 support, it could test between $153 and $180 in the next weeks. Breaking above this level might set off an upward reverse.
Although there is a recent bloodbath, historical patterns indicate that contrarian investors have buying possibilities even in such crashes. Big crypto whales have been buying up BTC and ETH, which shows they are very confident in the long-term growth of the market.
The next direction of the market will be much influenced by the forthcoming CPI report as well as possible legislative changes.
Also read: PAWS Price Prediction: Should $PAWS Be Launched on Binance?Lokesh Gupta is a seasoned financial expert with 23 years of experience in Forex, Comex, NSE, MCX, NCDEX, and cryptocurrency markets. Investors have trusted his technical analysis skills so they may negotiate market swings and make wise investment selections. Lokesh merges his deep understanding of the market with his enthusiasm for teaching in his role as Content & Research Lead, producing informative pieces that give investors a leg up. In both conventional and cryptocurrency markets, he is a reliable adviser because of his strategic direction and ability to examine intricate market movements. Dedicated to study, market analysis, and investor education, Lokesh keeps abreast of the always-changing financial scene. His accurate and well-researched observations provide traders and investors with the tools they need to thrive in ever-changing market conditions.