The global crypto market took a sharp turn Friday, shedding about 6.7% in value and knocking over $160b off its total market cap, now hovering around $3.84 trillion, according to data from CoinGecko.
The drop comes after four consecutive green weekly candles, suggesting the bullish momentum that carried digital assets to near-record highs is beginning to stall.
Bitcoin, which had recently surged above $120,000, pulled back to around $115,300, registering a 2.6% drop over the past 24 hours. Ethereum fell 1.3% to $3,596, while XRP posted a steeper 3.6% daily loss, now trading at $3.07.
The declines follow a broad market correction, driven by leveraged liquidations and shifting investor sentiment.
Galaxy Digital Sparks Jitters With $1.5B Bitcoin Sell-Off Spree
Further, Lookonchain said that Galaxy Digital offloaded 10,000 BTC, worth about $1.18b, putting serious pressure on the crypto market. It also pulled $370m in USDT from exchanges like OKX, Binance and Bybit, hinting at more sell-off plans.
Right after, Galaxy Digital moved another 2,850 BTC, valued at roughly $330.44m, to centralized exchanges. This suggests the firm is not done selling, and traders are bracing for more market swings soon.
Massive Liquidations Hit ETH, BTC, and XRP Amid Market Crash
Over $721m in leveraged positions were wiped out in the last 24 hours alone, according to liquidation tracker CoinGlass. Ethereum led the bloodbath with $163.9m in liquidations, followed closely by Bitcoin at $155.5m and XRP at nearly $49m.
The spike in liquidations shows the vulnerability of traders heavily exposed to borrowed funds amid sudden price drops.
Liquidation pressure mounted throughout the day, with nearly $273m worth of long positions cleared in the last 12 hours alone. The largest single liquidation order occurred on OKX’s BTC-USDT-SWAP market, valued at $17.35m.
The sudden downturn marks a natural retracement after an extended rally. The crypto market cap had recently tested the $4 trillion mark, while altcoins enjoyed outsized gains during the surge. However, the Altcoin Season Index has since dropped to 40, suggesting a weakening trend for smaller-cap tokens relative to Bitcoin.
Institutional activity remains a key factor in the current volatility. While ETF flows for Bitcoin continue to reflect long-term bullish interest, rotation strategies from firms such as BlackRock and Fidelity are believed to be causing temporary price dislocations.
These moves, paired with macroeconomic uncertainty and profit-taking from whales, have weighed on short-term performance.
Despite the downturn, retail sentiment remains surprisingly strong. The Crypto Fear & Greed Index continues to show “Greed,” hinting that many traders still view the correction as a buying opportunity rather than a bearish reversal.
Crypto Volatility Persists as Traders Watch $116K BTC Level
However, analysts caution that overly optimistic sentiment in the face of technical weakness can lead to further downside.
From a technical standpoint, Bitcoin has dipped below key support levels, with traders eyeing the $116,000 zone for signs of stabilization.
Ethereum is also under pressure following a recent spike in its validator queue, a sign that network activity may be cooling. XRP, meanwhile, has broken below its near-term support, with potential to test the $2.72 mark if selling continues.
Not all assets suffered losses. CoinGecko’s top gainers list included Vine, The Innovation Game and Pepecoin, up 44.7%, 46%, and 35% respectively, suggesting selective interest in niche tokens amid broader weakness.
While some investors see the dip as a healthy correction, others remain cautious.
With nearly 208,000 traders liquidated in a single day and rising volatility across major tokens, the road ahead looks choppy, even as long-term conviction holds strong.
The post Crypto Market Cap Drops Over 6% as Bitcoin, ETH and XRP Enter Red — What’s Going On? appeared first on Cryptonews.
https://cryptonews.com/news/crypto-market-cap-drops-btc-eth-xrp-enter-red/
