The global cryptocurrency market has lost about $720 billion in value since the start of the year, with total market capitalization falling from $2.97 trillion to about $2.25 trillion in just over five weeks.
Large holders selling as retail investors buy
Blockchain data shows that large Bitcoin holders, often referred to as “whales,” have been reducing their positions during the recent decline. Wallets holding 10 to 10,000 Bitcoin now control about 68.04% of the total supply, a nine-month low, after selling roughly 81,000 BTC over the past eight days.
At the same time, smaller retail investors continue to accumulate. Wallets holding less than 0.01 BTC now account for about 0.249% of supply, the highest level in roughly 20 months, showing continued dip-buying despite falling prices.
Bitcoin struggling near key support
In an interview with Coinpedia, Avinash Shekhar, co-founder and CEO of Pi42, said Bitcoin’s drop toward $60,000 marks its weakest stretch since late 2024, with the asset now down nearly 50% from its October 2025 peak.
He said heavy liquidations and continued outflows from exchange-traded funds have intensified the sell-off, while repeated failures to hold above the $70,000–$72,000 range have kept market sentiment defensive.
According to Shekhar, the $58,000–$60,000 region remains an important support band, and stability at those levels could gradually restore confidence and allow for a measured recovery if volatility begins to ease.
Ethereum and XRP lead the correction
Shekhar said the broader downturn has been driven by sharp weakness in Ethereum and XRP, which have both seen steep declines in recent weeks. Ethereum’s fall below $2,000 pushed prices back to levels last seen in 2023, with the asset down roughly 30% over the past week.
XRP has also dropped more than 25% during the same period, accompanied by falling derivatives activity and large liquidations, indicating reduced speculative participation across the market.
Deep corrections often precede consolidation
Despite the scale of the decline, Shekhar said such sharp market resets often occur before longer consolidation phases that help establish stronger foundations for future recovery.
“While near-term caution remains dominant, such deep corrections often precede consolidation phases that help establish stronger long-term bases for recovery,” he said.
While near-term caution remains dominant due to continued volatility and weak sentiment, he said improving stability near major support levels could eventually pave the way for gradual market normalization in the coming months.
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