The crypto market is facing a significant downturn, affecting major and secondary cryptocurrencies. Bitcoin, Ripple, Ethereum, and Solana have shown notable declines in recent days.
Major Cryptocurrencies Price Decline
Bitcoin (BTC) has fallen by 4%, along with Ripple (XRP), while Ethereum (ETH) lost 3% and Solana (SOL) dropped by 7%. The primary reason for this decline is the movement of Bitcoin’s price, seen as an indicator for market sentiment by many investors.
Factors Influencing Market Drop
One key factor is the current Bitcoin price movement. The $80,000 support level proved crucial for recovery, but instability below $90,000 is seen as bearish. Breaking the $84,000 resistance could indicate a potential recovery, though it remains premature to assert this.
Impact of Liquidations on the Market
The current liquidations have impacted market prices negatively. As noted by Crypto Rover, this is the biggest wipeout of Bitcoin longs since the Celsius and FTX collapse, partly attributed to political events. This provides additional downward pressure as forced position closures lead to sharp price changes.
The current market drop is caused by a combination of factors including psychological barriers for Bitcoin and large-scale liquidations. The near-term future will depend on Bitcoin's stability above key support levels and potential improvement in investor sentiment.
