The crypto market has once again hit by a sharp sell-off, sending digital asset prices tumbling across the board and triggering massive liquidations. Amid this major crypto market crash, Bitcoin, Ethereum, XRP, and other top digital assets fell rapidly as panic spread among traders. In a matter of hours, millions in leveraged positions were wiped out, further fueling the prevailing negative sentiment.
According to CoinGlass data, more than $800 million worth of cryptocurrencies were liquidated during the current crypto market crash. The sudden downturn has shaken investor confidence, with analysts pointing to a mix of macro uncertainty, weak market sentiment, and other factors as the drivers of this bearish trend.
Crypto Market Crash: Why are BTC, ETH, XRP Down Today?
The crypto market is currently facing severe pressure, with major assets posting notable losses. While the total market cap has dipped to $2.61 trillion, down 1.89%, it is clear that the industry is experiencing the largest crypto market crash, even worse than the one seen in October 2025.
Major players like Bitcoin, Ethereum, and XRP are currently experiencing one of their worst periods, plummeting to lower levels not seen for months. For instance, Bitcoin is currently trading near $75k, which was last seen in April 2025. Even during the 1011 crypto market crash, BTC managed to hold above $80k.
The current trend raises concerns as many believe that the cryptocurrency is poised for further downturn. Experts and analysts have projected BTC’s potential bearish trend, with the price even projected to hit a low of $25k.
At the same time, Ethereum is trading at $2,288, down 6.21% in a day, 21% in a week, and 26% in a month. Since April 2025, the cryptocurrency has been trading above this level despite high volatility and fluctuations. However, the current slip has sparked caution, as many predict its decline to $1,500 or below.
XRP is valued at $1.61, down 3.2% in a day. Over the past week and month, the altcoin has plummeted by a massive 15% and 20%, respectively. This indicates that most of the cryptocurrencies, including the key players, are currently experiencing their worst episodes.
The main reason behind this crypto market crash is uncertainty about global interest rates. Investors turned cautious after news of a new US Federal Reserve leader, sparking concerns that monetary policy could stay tighter longer. When interest rates are expected to stay high, riskier assets like crypto often fall, as people move their money into safer options.
This fear affected both stock and crypto markets at the same time. Over the past week, crypto prices have closely followed US stocks, showing just how much digital assets now respond to movements in traditional financial markets.
Massive Liquidation Worsens the Crypto Market Crash
The current crypto market crash was even worsened by huge liquidity waves. As crypto prices fell, traders using leverage were forced to close their positions. In the past three days, more than $5 billion in leveraged trades were liquidated.
In a single day, according to CoinGlass data, about $828 million was wiped off across major exchanges. Among these, $598 million was liquidated from long positions, while shorts comprised only $229 million.
Ethereum took a particularly hard hit. Reports of large unrealized losses by institutional investors like BitMine added to the fear around ETH.
This comes on the heels of a $1.7B liquidation of cryptocurrencies as reported by CryptoMoonPress. The media reported that major crypto assets were wiped off as gold and silver plunged severely.
