Crypto Bulls Rattled as Ethereum, XRP Plunge Beyond Bitcoin

The cryptocurrency market experienced significant turmoil as Bitcoin, Ethereum, and XRP faced steep declines. On Friday, Bitcoin dipped below $95,000, marking a six-month low, while its counterparts struggled even more. Analysts are now suggesting that this downturn could indicate a bear market.

Bitcoin and Major Altcoin Declines

Bitcoin fell to approximately $95,000, a critical psychological threshold for many traders. This decline is the first time in six months that it has dropped below this level. However, Ethereum and Solana saw even sharper decreases.

Ethereum’s Drop

• Ethereum’s price fell below $3,100.
• The cryptocurrency experienced a nearly 7% dip over a 24-hour period.
• It is now more than 35% lower than its August peak of $4,946.

Solana’s Struggles

Solana was one of the hardest-hit cryptocurrencies. After a drop exceeding 8%, its price settled around $142. This decline has occurred despite consistent inflows into new exchange-traded funds (ETFs) designed to broaden access for investors.

• Solana’s current price is down over 52% from its January high of $293.
• The new ETFs launched on October 28 have seen daily inflows since inception, according to Farside Investors.

XRP’s Recent Performance

XRP, the fourth-largest cryptocurrency, also faced a notable decline. The asset lost approximately 8% of its value, trading recently at $2.30. It had just become accessible to American investors through a new spot ETF.

Liquidation in the Market

Traders betting on price increases are now facing widespread liquidations. In just 24 hours, a staggering $1.36 billion in futures positions were liquidated. Of that amount, approximately $1.21 billion were long positions, indicating significant losses for optimistic traders.

Market Outlook

The overall cryptocurrency market has fallen by more than 4%, totaling around $3.35 trillion. Although Bitcoin has slightly recovered to about $96,000, it remains approximately 6.5% lower than the previous day.

Experts suggest that macroeconomic and geopolitical uncertainties have dampened institutional demand, contributing to a challenging fourth quarter for the crypto industry. It appears that the current trends may indicate a longer-term bear market ahead.