Crypto Market Plunges as Bitcoin Breaks Key Support, Liquidations Worsen Sell-Off
The cryptocurrency market shed $136 billion in a violent afternoon selloff, with Bitcoin leading declines after failing to hold the $88,000 support level. The bellwether cryptocurrency tumbled 4.1% to $85,700, dragging the total market capitalization down 3.7% to $2.93 trillion.
Ethereum bore heavier losses, sliding 6.1% to $2,932 amid cascading liquidations. Altcoins mirrored the downdraft - XRP dropped 6.5%, Solana fell 3.7%, and Dogecoin lost 5.5% as Leveraged positions worth $381 million vaporized.
The MOVE indicator triggered automated selling across major exchanges including Binance, Coinbase, and Bybit. Traders reported stop-loss orders compounding downward momentum, particularly in perpetual futures markets.
'This is classic deleveraging,' said on-chain analyst Michaël van de Poppe. 'The market had become over-reliant on leverage during the rally - now we're seeing the flipside.' The rout highlights crypto's heightened volatility compared to traditional assets; the S&P 500 declined just 0.3% during the same period.
