The crypto market is facing a major sell-off today, with total market value dropping to $2.66 trillion, down more than 6% in the last 24 hours. Bitcoin, Ethereum, XRP and other major cryptocurrencies have all fallen sharply, wiping out nearly $500 billion from the market in just a few days.
The biggest reason behind this fall is global uncertainty around interest rates. Investors turned bearish after news related to a new US Federal Reserve leadership appointment, which raised fears that future monetary policy could stay tighter for longer. When interest rates are expected to remain high, risky assets like crypto usually suffer, as investors move money into safer options.
This macro-driven fear pushed both stock markets and crypto lower at the same time. Over the past week, crypto prices have shown a strong link with US equities, showing how closely digital assets now react to traditional financial markets.
The decline was made much worse by massive liquidations. As prices started falling, leveraged traders were forced out of their positions. Over the last three days, nearly $5 billion worth of leveraged long and short positions were liquidated. When this happens, exchanges automatically sell assets to cover losses, which adds extra selling pressure and accelerates the crash.
Ethereum has been hit particularly hard. Reports of large unrealised losses held by institutional players increased fear around ETH, dragging down the wider altcoin market. As Ethereum weakened, confidence across the market dropped further.
Here’s how major cryptocurrencies were affected:
- Bitcoin fell around 13%, losing nearly $265 billion in market value.
- Ethereum dropped about 25%, erasing roughly $91 billion.
- XRP declined close to 22%, wiping out around $24 billion.
- Solana crashed more than 23%, losing about $16 billion.
Market sentiment has turned extremely bearish. The Fear and Greed Index has slipped to 18, a level classified as Extreme Fear. Many technical indicators now show the market is oversold, meaning prices may have fallen too fast in a short time.
Looking ahead, the short-term outlook depends on whether Bitcoin can hold the $77,000 support level. If that breaks, further downside is possible. Investors are also closely watching upcoming signals from the US Federal Reserve, which could determine whether markets stabilise or see another wave of selling.
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