Why is Crypto Crashing Today? XRP News, Bitcoin Price Today, Tesla Stock Earnings and More

The long-anticipated altcoin season appears to be on pause. Bitcoin dominance has surged back above 61%, signaling a shift in market momentum back toward BTC. At the same time, CoinMarketCap’s Altcoin Season Index has sharply dropped to 34 out of 100, far from the 75+ threshold that typically marks a true altcoin rally. This trend suggests that traders are rotating capital back into Bitcoin, likely due to macro uncertainty and recent volatility in the altcoin space. Until dominance drops and the index rebounds, investors may need to stay patient before the next altcoin breakout begins

Bitcoin dominance has likely entered wave (4) to the upside, signaling a potential shift in momentum. Analysts are watching closely for a retest of the descending trendline from below, which would serve as a strong bullish confirmation. However, to sustain downward pressure on altcoins and preserve the broader market structure, BTC dominance must remain below the critical 62.99% resistance level. A breakout above that could invalidate the bearish outlook and trigger further upside in Bitcoin’s market share, potentially delaying the long-awaited altcoin season investors have been anticipating.

A sudden market pullback wiped out nearly $735 million in crypto futures, with bulls suffering the most. Ethereum traders saw the largest losses at $152.78M, followed by XRP at $88.58M—both surpassing Bitcoin’s $65.29M in liquidations, per CoinGlass. The steep losses came as leveraged altcoin traders were caught off guard amid mild price drops. Over $625M in long positions were liquidated, highlighting panic exits and profit-taking near resistance. ETH dropped 3.6% to $3,540, while XRP plunged 6% to $3.25. Analysts say high leverage and lack of a clear catalyst intensified the selloff across major tokens.

The crypto market is in correction mode midweek following Bitcoin’s recent all-time high. BTC has slipped below the $120K mark, currently trading near $118K, with Ethereum, XRP, and Solana also breaking key support levels. Analysts point to widespread profit-taking by retail traders and whales as the primary cause, increasing selling pressure across top assets. Network profit/loss data confirms this trend, showing significant realized profits for BTC, ETH, and XRP since May. Meanwhile, institutional interest remains strong, keeping long-term sentiment intact. The altcoin season index is at 49—suggesting a possible shift in momentum toward altcoins is on the horizon.

While overall crypto trade volumes remain below yearly highs, liquidity for major altcoins is hitting new records. Ethereum’s 1% market depth, an indicator of liquidity, has reached its highest level in 2025, signaling stronger buying and selling support. XRP is also making headlines with a record-breaking move backed by a robust order book. This surge in liquidity suggests increased market confidence and deeper trading activity, even as volumes remain subdued. Analysts view this as a bullish signal, hinting at possible price stability or growth ahead for ETH and XRP.