The cryptocurrency market faced a sharp sell-off on Monday, with Bitcoin plunging to an intraday low of $80,000 and Ethereum shedding nearly 6%. The downturn comes despite recent pro-crypto developments in the US, including Donald Trump’s announcement of a strategic Bitcoin reserve.
Investors remain on edge as major altcoins like Solana (SOL) and XRP also posted significant losses, signaling heightened market volatility. The global crypto market cap slipped 4.83% in the last 24 hours to $2.69 trillion, with over $600 million liquidated, according to Coinglass data. Bitcoin alone saw over $1 billion in long positions wiped out, reflecting deep market uncertainty.
Analysts point to macroeconomic factors, including the latest non-farm payrolls (NFP) report, which suggests the Federal Reserve may maintain a hawkish stance. Trade tensions stemming from Trump’s tariff policies have added further pressure on risky assets.
Bitcoin and Ethereum Decline
Bitcoin (BTC) lost nearly 5% and was trading at $82,179 at press time after hitting a low of $80,052.49. The leading cryptocurrency retreated from its peak of $86,146.15, with $237.6 million in BTC liquidations recorded intraday. However, Bitcoin’s dominance increased slightly by 0.03%, highlighting increased volatility in altcoins.
Ethereum (ETH) fell 6% over the past 24 hours, trading at $2,060 after bouncing between an intraday low of $1,991.19 and a peak of $2,194.89. The second-largest cryptocurrency witnessed $107.56 million in liquidations, with its market dominance settling at 9.2%.
Cryptocurrency Market Decline
XRP dropped nearly 6%, trading at $2.18 after touching a low of $2.09. Despite limited liquidations of $30.34 million, XRP remains under selling pressure. Solana (SOL) plunged 8% to $127.57, with an intraday range between $124.38 and $139.73. SOL recorded $26.6 million in liquidations. Dogecoin (DOGE) declined 10% to $0.1725, while Shiba Inu (SHIB) lost 4%, trading at $0.00001208. Other meme coins like Pepe (PEPE) and TRUMP plummeted over 9%, reflecting the broader market downtrend.
Several reasons might be behind this decline. Solana, for instance, has experienced some volatility in the past, specifically network outages, which may still affect investor sentiment. XRP has also been under a lot of pressure because of its ongoing fight in court against the U.S. Securities and Exchange Commission (SEC), and any news regarding the case can significantly impact its price action.
Meme-based cryptocurrencies such as Dogecoin (DOGE) or Shiba Inu (SHIB) are highly prone to changes in social media sentiment or endorsement by celebrities, with the consequence that any loss of interest or bad news can lead to dramatic price drops. In addition, the entire cryptocurrency space is subject to movements based on general economic conditions like inflation, interest rate changes, or overall market mood, which tends to have a more profound impact on altcoins than Bitcoin.
US Bitcoin Holdings and Market
While the US government reassured investors it would not sell the 200,000 bitcoins seized from Silk Road, concerns over macroeconomic factors and continued volatility remain.
Some analysts see whale accumulation as a sign of confidence, but uncertainty looms as crypto markets brace for further swings.
Final thoughts
The post emphasizes the sharp decline in the crypto market, where top cryptocurrencies such as Bitcoin, Ethereum, Solana, and XRP plummeted. Though there has been a recent upswing in pro-crypto trends in the U.S., such as Donald Trump’s Bitcoin reserve declaration, the market has been characterized by heightened volatility. Bitcoin, for instance, hit an intraday low of $80,000, and Ethereum lost close to 6%, indicating general market woes.
Analysts attribute macroeconomic conditions, including the Federal Reserve’s hawkish policy and trade tensions associated with Trump’s tariff policies, to the market’s current volatility. The article also highlights how altcoins such as Solana and XRP have been under selling pressure due to specific issues, including Solana’s previous network outages and XRP’s ongoing legal dispute with the SEC. Moreover, meme-derived cryptocurrencies such as Dogecoin and Shiba Inu tend to be extremely sensitive to changes in social media sentiment and, therefore, are particularly prone to sudden price declines.
