The cryptocurrency market extended its downtrend over the past 24 hours, with Bitcoin breaking below the key psychological level of $75,000 and Ethereum leading the decline with a drop of over 7%. The broader sell-off reflected weak risk appetite across global financial markets.
Bitcoin fell more than 3%, briefly trading under $75,000 during the session. This move triggered a sharp sell-off across the market, intensifying concerns over near-term price stability. The decline marked a decisive break of a key support level.
Ethereum was the hardest hit among major assets, falling more than 7% and slipping below the $2,300 level. The sell-off was broad-based, with Solana and other large-cap tokens also posting steep intraday declines. Total market capitalization fell significantly as investors reduced exposure.
Market analysts attributed the downturn to a combination of technical breakdowns, unwinding of leveraged positions, and deteriorating sentiment. As Bitcoin slipped below key support, automated sell orders and margin calls amplified downside momentum, leading to a cascade of liquidations across derivatives markets. Data showed elevated liquidation volumes, highlighting how leverage magnifies market swings during periods of stress.
The weakness coincided with broader risk-off sentiment in global markets, reinforcing cryptocurrencies' sensitivity to shifts in financial conditions. Most crypto sectors posted losses, including Layer 1, Layer 2, DeFi, CeFi, Meme, and PayFi. SocialFi emerged as the only resilient segment, posting modest gains against the trend. Select tokens like zkSync, MYX Finance, and Ultima also recorded notable gains despite the broader sell-off.
The breach of $75,000 has tested investor confidence, particularly among those who entered during the recent rally. Institutional investors have been affected by mark-to-market losses on large Bitcoin holdings. While some view sharp corrections as a normal feature of crypto cycles, others point to tightening financial conditions and persistent macroeconomic uncertainty as factors that could prolong volatility.
