The cryptocurrency market has been hit by another sharp crash, with Bitcoin (BTC), Ethereum (ETH), and major altcoins plunging in the last 24 hours. Bitcoin has dropped below $106,000, falling nearly 5%, while Ethereum is down over 6% to around $3,790.
XRP, which recently traded above $2.40, is now at $2.28 and faces increasing pressure amid fears of a deeper fall below the $2 level. BNB trades near $1,070, Solana (SOL) at $181, and Cardano (ADA) at $0.62. Dogecoin (DOGE) has fallen to $0.18, and TRON (TRX) is hovering around $0.30.
Across the board, the market’s total capitalization has fallen to $3.57 trillion, marking a 5.63% daily decline. The average crypto RSI (Relative Strength Index) stands at 36.7, an oversold territory that often means panic-driven trading.
Several factors appear to be driving this sell-off. Analysts have observed a brewing regional banking crisis in the U.S., with smaller institutions like Western Alliance Bank and Bank of California facing heavy losses. The collapse of regional lenders Tricolor and First Brands has also renewed fears of a wider financial strain.
This has led to a liquidity squeeze in the U.S. banking system. According to reports, banks have borrowed nearly $7 billion from the Federal Reserve’s standing repo facility in just one session.
A surge in leveraged long positions may have made this downturn worse. Over the past week, traders placed billions of dollars in bets that Bitcoin and altcoins would continue rising.
When prices started to fall, these overleveraged positions were liquidated, triggering a cascade of automatic sell orders across exchanges.
Analysts warn that the next few days could remain bearish. The combination of macro fears, regional banking stress, and leveraged unwinding has set up the perfect storm for volatility.
Still, a bounce is possible once panic selling cools off. Historically, Bitcoin corrections of 5–10% during bull markets have often served as reaccumulating zones before the next leg up.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
ZEC price has been moonish this week, checking fresh highs and attracting the crypto crowd…
Coinbase, one of the world’s largest cryptocurrency exchanges, has been fined €21.5 million by the…
Recent Sui price action tells a gripping story of resilience, sharp reversal, and caution. In…
The crypto ETF race is heating up again, and this time, it’s Dogecoin’s turn. Bitwise,…
The crypto market is currently in its longest bear market in history, with altcoins trading…
Tether’s Bitcoin wallet recently acquired 961 BTC worth about $97 million from Bitfinex, following its…
