Summary of this article
Crypto market experiences sudden crash, major coins lose billions rapidly.
Experts cite macro, geopolitical tensions, and market uncertainty driving declines.
Potential recovery expected; Bitcoin may rally post-gold momentum peaks.
Cryptocurrency market recently saw a severe crash with major coins like Bitcoin and Ethereum sudden fall within hours. The overall market capitalization fell by billions, impacting all the cryptocurrencies. This movement comes after a period of relative stability in the market that marks notable fluctuations.
Bitcoin, Ethereum, and Altcoins See Sudden Market Decline
Major cryptocurrencies saw notable declines recently. Bitcoin dropped 5.21 percent to $105,040.51, with a trading volume of $101.36 billion. Ethereum fell 2.11 percent to $3,712.23 with a volume of $57.07 billion while Binance Coin experienced a sharp 12.17 percent declined to $1041.
Other significant movements included XRP down 7.65 percent at $2.21, Solana, down 8.64 percent at $175.84, and Avalanche which fell 12.27 percent to $19.12. These shifts reflect a widespread dip across both all types of and emerging cryptocurrencies.
What Experts Say About the Recent Crypto Market Dip
To know the causes of this sudden drop, crypto experts shared their perspectives on the market movement.
According to CoinGecko data, the global crypto market cap fell by $100 billion, from around $3.86 trillion to $3.76 trillion in just a few hours. It has currently dropped further to $3.65 trillion, marking a 5.9 per cent decline in the last 24 hours.
Ashish Singhal, Co-founder, CoinSwitch, said, “The rising tensions between the US and China and fear of interest rates has been leading to market volatility since the past few days. This decline is in crypto. With the tensions, the selloffs have been rising due to investors moving away from risky assets, which is a natural tendency. However, Bitcoin still stands above the $100K level, up 55 per cent since the past year.”
Edul highlights macro and geopolitical factors are also weighing on crypto markets. He said: “Bitcoin is trading below $106,000, largely driven by market uncertainty. While Fed Chair Jerome Powell has hinted at a rate cut in the upcoming FOMC meeting, the lack of fresh economic data due to the U.S. government shutdown has left traders without a clear direction.
He added that geopolitical tensions which included tariff concerns on everyday goods like cooking oil and the imposition of new port fees, are weighing on overall market sentiment.
Avinash Shekhar, Co-Founder & CEO, Pi42, said, "The crypto market is facing sudden turbulence amid macro and leverage pressures, pushing Bitcoin, Ethereum, Solana, XRP, and Dogecoin lower.”
He added that this structural adjustment, though unsettling, may help clear overstretched positions and provide a clearer foundation for future market moves. The coming sessions will be critical to see if the market stabilizes.
Crypto Market Outlook: What’s Ahead
While discussing about Bitcoin started October at an all-time high twice but has now seen sudden drops, Ashish said, "This is short-term volatility, and corrections are a normal part of any market, including crypto. In the long term, it is expected capital to continue flowing into Bitcoin as investors seek a hedge against uncertainty. The aim should be to stick to your plan and diversify smartly while investing within your limits."
Amid persistent market pressure, there is hope for a potential revival. Edul, said, "Historically, when gold’s momentum peaks, as seen in August 2020, September 2024, and April 2025, Bitcoin has followed with strong rallies. If this pattern repeats, a post-gold rotation could drive Bitcoin toward the $130,000 level in the coming months."
