Crypto Market Downturn: The Reasons Behind the Sudden Decline of Bitcoin, Ethereum, XRP, and DOGE

Crypto News- The cryptocurrency market experienced a significant selloff at approximately 09:30 AM UTC, leading to a nearly 1.50% decline in the global crypto market cap, which fell to $1.07 trillion. This sudden downturn primarily affected altcoins, including Ethereum (ETH), XRP, Solana (SOL), DOGE, and SHIB, while Bitcoin remained relatively stable. During this rapid decline, CoinMarketCap’s Fear & Greed Index dropped from 47 to 45 within just an hour.

Crypto Market Downturn: The Reasons Behind the Sudden Decline of Bitcoin, Ethereum, XRP, and DOGE

Bitcoin’s price retreated from a 24-hour high of $28,000 to $27,500. It is currently trading at $27,516. The selloff resulted in the liquidation of $50 million worth of long positions within an hour, with a total of $90 million liquidated over the course of 24 hours, including approximately $19 million from Bitcoin.

Ethereum’s price also suffered, falling below the $1,600 level. The decline was exacerbated by the Ethereum Foundation’s sale of ETH, further dampening upside potential. Within the span of an hour, ETH experienced a more than 1% drop and a nearly 2% decrease over the past 24 hours. It is currently trading at $1,594, with a 24-hour low and high of $1,638 and $1,591, respectively.

Among the leading altcoins, Bitcoin Cash (BCH) experienced the most significant selloff, with a 4% drop within an hour. Other altcoins such as XRP, SOL, DOGE, SHIB, and ADA also saw losses of nearly 2% within the same hour, resulting in a 5% decline over the past 24 hours.

The primary reason behind this sudden selloff was a massive liquidation of long positions totaling $90 million, with over 38,000 traders liquidated in the past 24 hours. Notably, the largest single liquidation order on Bybit’s BTCUSD amounted to $3.11 million.

Additionally, macroeconomic factors played a role in the market downturn. Geopolitical tensions in the Middle East, particularly the Israel-Hamas conflict, led to an increase in WTI and Brent crude oil prices. Global stock market indexes were in the red due to these conflicts, and investors are concerned about the potential acceleration of inflation and its impact on global monetary policies.