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Crypto Market Crash: Reasons Why Bitcoin, ETH, XRP, DOGE, SOL, SUI Are Falling

Crypto Market Crash: Macro headwinds, selloff by whales, and Fed rate cuts were major reasons for Bitcoin, ETH, XRP, DOGE, SOL, and SUI fall.
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Crypto Market Crash: Reasons Why Bitcoin, ETH, XRP, DOGE, SOL, SUI Are Falling

Highlights

  • Crypto Market Crash: Over $400 million in BTC, ETH, XRP, SOL, and top altcoins are liquidated.
  • Macro becomes the reason for the crash as tronger-than-expected jobs data put US Fed rate cut off table.
  • Whales and institutions are selling Bitcoin and Ethereum holdings.
  • Bitcoin may crash to $80K, while Ethereum, XRP and other altcoins to follow.

The crypto market saw massive liquidation during early US hours on Monday plunging the global crypto market cap by more than 2% from $3.34 trillion to a low of $3.21 trillion. Investors lost over $130 billion in wealth with Bitcoin (BTC) and Ethereum price approaching key support levels. Meanwhile, other altcoins including XRP, BNB, Solana (SOL), Cardano (ADA), and SUI also fell 3-8%. The crypto market crash resulted in panic selloff.

Dogecoin (DOGE) and Shiba Inu (SHIB) prices losing frenzy to tumble over 5%. The market is now consolidating before Donald Trump’s inauguration next week.

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Crypto Market Crash: Over $400 Million in Top Crypto Liquidated

Coinglass data indicates over $400 million in crypto liquidations, with over 170K traders liquidated in the last 24 hours. The largest single liquidation order of BTCUSDT valued at $8.21 million happened on crypto exchange Binance.

Crypto Market Liquidations. Source: Coinglass

Nearly $330 million long and $70 million short positions were liquidated, with BTC, ETH, DOGE, SOL, XRP, and SUI witnessing leading the liquidations. In the last 1 hour, $55 million in cryptocurrencies were liquidated causing the crypto market to crash.

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Macro Factors Create Headwinds

Traders have turned more cautious after stronger-than-expected jobs data indicated a robust United States economy. Concerns over inflationary tariffs under President-elect Donald Trump have also fueled a cautionary outlook. It has given more room for the Federal Reserve to delay further rate cuts this year.

Wall Street giants such as Goldman Sachs, Bank of America and Barclays confirmed a delay in Fed rate cuts this year. Meanwhile, federal funds futures show that traders no longer fully expect rate cuts before the end of the year.

The US dollar index (DXY) has surpassed 110 for the first time since 2022. Also, the 10-year Treasury yield increased to 4.8%, the highest level since October 2023. This has caused a massive dropdown in Bitcoin price.

Macro headwinds for the market are not over yet as the US CPI inflation, PPI, and unemployment claims are due this week. This may cause crypto market crash to worsen.

Whales and Institutions Selling Bitcoin and Ethereum

Bitcoin price tumbled below the key support level of $92,000, while ETH price risks falling below $3000. This happened as whales and institutions started liquidating their holdings, first signaled by outflow in spot Bitcoin ETFs.

CoinGape reported that Bitcoin network activity has dropped to its lowest level since November 2024. Moreover, the 7-day moving average of the Short-Term Holders’ SOPR (Spent Output Profit Ratio) has fallen below 1, signaling that short-term holders are selling their assets at a loss. BTC risks crashing to $80K if it loses this crucial support level.

Source: CryptoQuant

Tron founder Justin Sun deposited a total of $320.4 million worth of Ethereum to crypto exchange HTX in the last 13 hours. Ethereum whales are dumping ETH at a loss.

XRP price prediction by CoinGape Markets shows major trouble for the crypto asset. XRP broke out above the symmetrical triangle pattern, but the outlook remains uncertain.

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Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

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Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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