The red is deep and widespread. The total crypto market drop 3.65% in 24 hours, shedding approximately $85 billion to land at $2.35 trillion. Bitcoin drifted sideways near $68,000, Ethereum hovered around $2,000, and XRP suffered a brutal 9% haircut to $1.47. Over $325 million in liquidations exacerbated the pain, with $240 million coming from over-leveraged long positions. The Crypto Fear & Greed Index now sits at a grim 12—whispering distance from “Extreme Fear.”
Why the Crypto Market Drop Deepened Today
The decline caught some off guard, especially after last week’s cooler CPI print had reignited rate-cut optimism. So why the sudden slide? Macro uncertainty is the primary culprit. Traders are de-risking ahead of two major events this week:
- Federal Reserve Meeting Minutes – Any hawkish tilt could further pressure risk assets.
- Core PCE Inflation Report – The Fed’s preferred inflation gauge; a hot print would crush lingering rate-cut hopes.
Additionally, the U.S. Supreme Court is set to rule on Trump-era tariffs this Thursday. Any disruption to trade policy would inject immediate volatility into global markets—and crypto is never insulated.
Bitcoin, Ethereum, and XRP: Key Levels to Watch
Bitcoin slipped 2.37% to $68,907, trapped between $67K support and $70K resistance. A reclaim of $70K could trigger a move toward $72K. Lose $67K, and $66K becomes the next magnet.
Ethereum dropped 4.38% to $1,976. Bulls must defend the $1,950 zone; failure opens a retest of the $1,800 swing low.
XRP was the hardest hit, plunging 9% to $1.48. Support at $1.46 is critical. A breakdown could accelerate toward $1.40.
ETF Flows Turn Negative Again
Digital asset investment products recorded their fourth consecutive week of outflows, totaling $173 million. Bitcoin and Ethereum bled the most, while XRP and Solana ETFs attracted modest inflows—a rare bright spot.
My Thoughts
This crypto market drop feels like a liquidity clearance event rather than a structural breakdown. The macro calendar is heavy, and traders are rightfully cautious. But note: the selling is concentrated in longs, not panic-driven distribution from strong hands.
The $67K-$68K zone for Bitcoin is critical. It represents the 2021 all-time high breakout level and has held multiple tests. A weekly close below this region would be technically damaging. A reclaim of $70K, however, would likely trigger a wave of short covering and institutional re-entry.
Patience remains the play. Let the macro dust settle. If $67K holds, this is a buying opportunity. If it breaks, $62K-$64K becomes the next accumulation zone.
