The cryptocurrency market turned red in the past 24 hours as overall capitalization dropped to $3.78 trillion, marking a 4.46 percent decline. The CMC100 index slipped by 4.57 percent to $233.59, while the Fear & Greed Index eased down to 43, moving closer to fear. Altcoin activity remains muted with the Altcoin Season Index at 46 out of 100, meaning Bitcoin still controls market momentum. In the same period, total liquidations across exchanges climbed to $942.76 million, showing just how severe the sell-off was.
Bitcoin Faces Heavy Pressure
Bitcoin dipped under $110,000, extending losses after its recent peak near $123,000. According to experts, this decline is part of a natural market cycle rather than a breakdown of the bull trend. The leading cryptocurrency still trades comfortably above its 200-day moving average, which is often considered the ultimate support marker in long-term bull runs.
Volatility has been driven largely by whale activity. Large players have been offloading coins, sparking fear and triggering retail sell-offs. This has happened repeatedly in past cycles. When Bitcoin entered the overbought zone at $123,000, a correction was expected. Now, as it edges toward oversold conditions, attention is shifting to a possible rebound.
Altcoins Struggle to Keep Pace
Ethereum dropped to $4,396 in the last 24 hours, losing over 7 percent, while XRP slipped to $2.89 with a nearly 5 percent decline. Binance Coin fell to $846, Solana corrected sharply to $187 after a 10 percent fall, and Dogecoin retreated to $0.21. Cardano also declined by more than 8 percent to $0.83.
Despite the downturn, institutional appetite is still there. ETHZilla Corp announced the purchase of 7,562 Ethereum at an average price of $4,531, expanding its total holdings to over 102,000 ETH valued at $470 million. The company also confirmed a $250 million stock repurchase program, signaling confidence in long-term Ethereum growth.
Macro Liquidity and Correlation Debate
One concern in the market has been Bitcoin’s deviation from global M2 liquidity growth, a metric it usually tracks closely. While the gap has widened, macro strategist Raoul Pal said that such divergences are not unusual. Historically, Bitcoin has always caught up to global liquidity cycles, and risk assets from equities to real estate remain aligned with the same trend.
The U.S. Dollar Index is also showing weakness, which typically benefits cryptocurrencies and other risk assets. Meanwhile, traditional markets like the S&P 500 and NASDAQ are cooling after their rally on Federal Reserve news, adding to the sense of consolidation across asset classes.
If Bitcoin continues to drift toward oversold levels, a reversal could spark the next stage of the rally.
