BTC, ETH, XRP Drag Crypto Market Cap Down to $2.15trn
Sell pressure in top cryptocurrencies- Bitcoin (BTC), Ethereum (ETH), Binance Coin, XRP and others dragged the market cap down by about 3% in 24 hours to $2.15 trillion.
The market is trading tightly amid the US Federal Reserve’s hawkish tone, which is expected to tighten financial conditions for average Americans in the coming months.
Data from the crypto market show that market capitalisation is down 2.74% to $2.15 trillion over 24 hours, amid a breakdown of a key funding mechanism for Bitcoin.
Strategy’s STRC preferred shares have traded below their $100 par value since May, breaking the instrument’s peg. This is significant because proceeds from STRC sales were a primary source of capital for Strategy’s massive Bitcoin purchases, which at times exceeded weekly ETF inflows.
Ethereum price is hovering below $1.7k, and XRP has fallen to $1.22 as sentiment shifted despite the US and Iran interim deal that has reduced geopolitical pressures significantly.
The market faces a confluence of bearish factors: persistent hawkish rhetoric from the new Fed Chair, net outflows from U.S. spot Bitcoin ETFs, and a sharp 24-hour liquidation of over $127 million in Bitcoin longs.
These factors drained liquidity and confidence. The Fear & Greed Index at 19 (“Extreme Fear”) confirms the negative sentiment. The 74% correlation with Gold suggests both assets are reacting to shifting inflation and rate expectations.
Technically, the market is testing a critical support zone. The yearly low is $2.1 trillion, which aligns with a key Fibonacci retracement level.
The $2.1 trillion–$2.15 trillion market cap range is a make-or-break area. Holding above it could lead to consolidation, while a breakdown would target the next major support near $2.0 trillion.
A daily close below $2.1 trillion will confirm further downside, or a reclaim of the 7-day simple moving average at $2.21 trillion will signal a short-term recovery.
market’s decline is rooted in a specific, structural reduction in Bitcoin demand, exacerbated by broader macro caution. The path forward likely hinges on whether institutional flows can stabilise and if regulatory progress can restore confidence. XRP Price Drops by 4.4% on U.S. Fed Hawkish Tone
