Crypto Bloodbath: BTC & ETH Plunge 6% as XRP Teeters on $2 Cliff Edge

Digital assets get hammered in market-wide selloff

The Great Unwinding

Bitcoin and Ethereum lead the carnage with identical 6% losses, dragging the entire crypto complex lower. No safe havens emerge as traders rush for exits.

XRP's Precarious Position

Ripple's token flirts with disaster, threatening to breach the critical $2 support level that's held for months. Market watchers hold their breath as liquidation engines roar to life.

Contagion Spreads

Altcoins get crushed in the downdraft, proving once again that when Bitcoin sneezes, the entire crypto space catches pneumonia. Leveraged positions evaporate faster than a meme coin's utility.

The 'number go up' thesis takes a brutal hit—reminding everyone that in crypto, the only thing that moves faster than gains are losses. Maybe those traditional finance guys had a point about volatility after all.

The cryptocurrency market has been hit by another sharp crash, with Bitcoin (BTC), Ethereum (ETH), and major altcoins plunging in the last 24 hours. Bitcoin has dropped below $106,000, falling nearly 5%, while Ethereum is down over 6% to around $3,790.

XRP, which recently traded above $2.40, is now at $2.28 and faces increasing pressure amid fears of a deeper fall below the $2 level. BNB trades near $1,070, Solana (SOL) at $181, and Cardano (ADA) at $0.62. Dogecoin (DOGE) has fallen to $0.18, and TRON (TRX) is hovering around $0.30.

Across the board, the market’s total capitalization has fallen to $3.57 trillion, marking a 5.63% daily decline. The average crypto RSI (Relative Strength Index) stands at 36.7, an oversold territory that often means panic-driven trading.

Several factors appear to be driving this sell-off. Analysts have observed a brewing regional banking crisis in the U.S., with smaller institutions like Western Alliance Bank and Bank of California facing heavy losses. The collapse of regional lenders Tricolor and First Brands has also renewed fears of a wider financial strain.

This has led to a liquidity squeeze in the U.S. banking system. According to reports, banks have borrowed nearly $7 billion from the Federal Reserve’s standing repo facility in just one session.

A surge in Leveraged long positions may have made this downturn worse. Over the past week, traders placed billions of dollars in bets that Bitcoin and altcoins would continue rising.

When prices started to fall, these overleveraged positions were liquidated, triggering a cascade of automatic sell orders across exchanges.

Analysts warn that the next few days could remain bearish. The combination of macro fears, regional banking stress, and leveraged unwinding has set up the perfect storm for volatility.

Still, a bounce is possible once panic selling cools off. Historically, Bitcoin corrections of 5–10% during bull markets have often served as reaccumulating zones before the next leg up.