Over $1 trillion has been wiped out in the last few weeks as risk sentiment cools and market volatility rises

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The cryptocurrency market is undergoing a sharp correction. Over the past six weeks, more than $1 trillion has been wiped off the combined value of digital assets, as investor sentiment turned cautious. The plunge is linked to fears of a technology-stock bubble, reduced expectations of imminent interest-rate cuts, and a risk-off mindset spreading from global equity markets into crypto. The top tokens have not been spared: Bitcoin has fallen to levels not seen since April, and many altcoins have followed.

Bitcoin (BTC)

Bitcoin is trading in the vicinity of $85,600 and has dropped by roughly 7.3% in the latest session. Its intraday high reached about $93,021, while the low extended down to around $85,429. In recent top-level commentary, Bitcoin has been cited as having lost all of its 2025 gains so far, dipping to levels around $89,000. Many analysts view the breach of key support levels as a warning sign for the broader market. The weakness appears driven by fading hopes of near-term central bank rate cuts, and by correlation with tech stock weakness.

Ethereum (ETH)

Ethereum is trading near $2,806, with a drop of about 7.3% today. Its intraday range has spanned from roughly $3,056 down to $2,783. As the second-largest crypto by market cap, ETH’s decline is influencing sentiment across the altcoin space. Concerns include slower-than-expected ecosystem growth, competition from other blockchains, and general risk aversion among investors.

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Solana (SOL) & BNB

Solana is trading around $132.57, down about 7.4% in the latest session. Its range today: from about $144.47 down to $131.38. The larger drop reflects its higher beta, meaning it is amplifying the market’s risk-off move.

BNB, the native token of the major exchange ecosystem, is near $862.69, retreating roughly 5% today with intraday highs near $913 and lows around $858. Its relative resilience compared to some others may reflect the value of the exchange token down-market, though it is not immune.

XRP, Cardano (ADA), Dogecoin, and Shiba Inu

Although precise up-to-the-minute numbers for XRP, ADA, DOGE, and SHIB a always visible in this summary, the general trend is clear: these assets are also suffering heavy losses in line with the broad crypto downturn.

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  • XRP is dealing with pressure as regulatory and flow-related issues weigh.
  • Cardano (ADA) is likewise under strain, with its research-driven ecosystem not immune to macro headwinds.
  • Meme-coins such as Dogecoin and Shiba Inu, often highly leveraged in sentiment rather than fundamentals, are showing particularly steep declines.

What’s Driving the Decline?

Multiple factors are converging to create the current downturn. Firstly, global risk sentiment has deteriorated: stock markets, especially in tech, are under pressure, and speculative assets like crypto are feeling the impact. Fear of a tech bubble is spreading. Secondly, expectations of future interest-rate cuts have softened, reducing the appeal of non-yielding assets such as crypto. 

Thirdly, the inter-connection between crypto and traditional finance is increasing: crypto is no longer isolated but more tightly linked to broader financial flows and sentiment shifts. Finally, technical factors like the breakdown of support levels and sudden sell-offs by large holders (whales) are magnifying the drop.

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What to Watch Going Forward

The focus now shifts to whether key support levels hold, and whether the broad risk-off mood can reverse. For Bitcoin, the $89,000–$90,000 area is important, while for altcoins, there are analogous thresholds. If these fail, deeper corrections toward $70,000 or $60,000 for Bitcoin become plausible. 

On the positive side, any clear signal of improving macro-environment trigger a crypto rebound. Regulator signals and institutional flows also remain key: while more than half of hedge funds now report some crypto exposure, most allocate under 2% of their assets, which shows both interest and caution.

Final Thoughts

The crypto market is in the throes of a correction rather than an expansion. Major coins like Bitcoin and Ethereum are under pressure, and the wider ecosystem is following. The losses are large, and the risk remains elevated. The coming days and weeks will likely hinge on broader financial market sentiment, regulation, and whether crypto can decouple from the tech-stock cycle or continue to follow it downward. 

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Investors and observers will be watching closely to see whether the current phase becomes a deep retrenchment or simply a reset before the next leg of growth.