The post Crypto is Crashing Again: Why Bitcoin, Ethereum, and XRP Are Down Today appeared first on Coinpedia Fintech News
The crypto market has slipped back into the red after several days of mixed trading. The global market cap has fallen to $3.84 trillion, down 1.03% in 24 hours, as traders brace for more volatility. Bitcoin, Ethereum, and XRP are all down today as short positions rise and investor sentiment weakens.Â
Bitcoin (BTC) has fallen 2.04% in the past 24 hours, trading near $112,500 with a market cap of $2.24 trillion. Daily trading volume remains high at $85.9 billion, showing strong participation even as prices drop. Ethereum (ETH) is down 1.19%, currently priced at $4,124 with a market cap of $497.7 billion. XRP is down about 3% on the day, trading around $2.51.Â
Whales Move, Traders React
Reports show that a handful of large wallets opened heavy short positions on major exchanges overnight. These moves often trigger short-term sell-offs as smaller traders react to perceived insider positioning.
The broader market is now entering a consolidation phase after weeks of strong performance. With the Crypto Market Cap-to-Volume ratio declining, liquidity is thinning, a sign that traders are waiting for new catalysts before making large moves.
How Long Will the Downtrend Last
Market analysts say the current pullback is part of a normal mid-cycle correction rather than the start of a deep bear phase. Historical data shows that recovery in crypto markets often begins with Bitcoin stabilizing first, followed by gradual rotation into large-cap altcoins such as Ethereum and XRP.
Recovery may take months to fully play out. Past cycles have shown Bitcoin dominance rising early in the correction, before liquidity slowly returns to altcoins. With Bitcoin dominance already softening since July, analysts expect a gradual rebalancing rather than a sharp rebound.
Source: https://coinpedia.org/news/crypto-is-crashing-again-why-bitcoin-ethereum-and-xrp-are-down-today/
