Crypto Markets Plunge Amid Rising Risks
The cryptocurrency market experienced a downturn on Wednesday, with major assets falling due to macroeconomic challenges and geopolitical tensions affecting investor sentiment. Bitcoin saw a decrease of over 3 percent, lingering near $89,000, whereas Ethereum encountered a steeper drop of nearly 7 percent, landing at $2,970. Both assets reached their lowest levels in a fortnight. The market’s negative sentiment deepened as yields on U.S. and Japanese bonds kept climbing, fostering a cautious environment. In just 24 hours, more than $1 billion in cryptocurrency positions were liquidated. Analysts highlighted the unwinding of leverage, outflows from exchange-traded funds, and a shift in investor focus towards conventional safe-haven assets like gold and silver, both of which achieved record highs.
“In the last 24 hours, global markets have shown a careful approach as geopolitical tensions and trade-related uncertainties continue to affect overall risk sentiment.” This has created strain on stocks and ignited fresh interest in conventional safe-haven assets like gold. “Crypto markets have shown this caution—not through panic selling, but through consolidation, lower leverage, and reduced risk-taking,” stated Nischal Shetty. Nonetheless, Shetty highlighted that this market phase does not alter the long-term perspective for crypto. “As the asset class becomes more integrated into global finance, it naturally responds to major news events.” At the same time, the intrigue surrounding cryptocurrency as a legitimate alternative financial system continues. “As global clarity improves, market confidence is expected to shift in response,” he added.
At the time of writing, Bitcoin was valued around $89,000. The largest digital asset by market capitalisation is currently valued at $89,361, reflecting a decline of 2.73 per cent, alongside a 24-hour trading volume of $56.96 billion, as reported. The asset fluctuated between $87,814 and $91,997 in the past 24 hours. Bitcoin is currently trading approximately 29 percent lower than its all-time high of $126,198, which was reached on October 7, 2025. From a technical perspective, Riya Sehgal highlighted that Bitcoin is currently trading below crucial short-term moving averages, facing resistance at $92,800 and finding support around $88,000. “Traders should prepare for ongoing fluctuations, as macroeconomic uncertainty, bond market pressures, and U.S.–EU trade news persist in shaping sentiment.” She stated “A breakout above resistance might stabilize momentum, but currently, risk aversion prevails.” On-chain data shows a decrease in selling activity. Akshat Siddhant highlighted that spot volumes have risen from $8.8 billion to $9.3 billion, and the net buy-sell imbalance has expanded to $81.2 million. “These signals suggest a notable reduction in selling pressure.” Siddhant noted “For Bitcoin, 88,000 remains a critical support level, while 91,800 is immediate resistance.” Ethereum encountered notable selling pressure, trading below the crucial $3,000 mark.
According to the most recent figures, there has been a decline of 6.03 percent, with the current price at $2,976, accompanied by a trading volume of $33.75 billion over the past 24 hours. The coin saw a fluctuation range of $2,921 to $3,171 in the past 24 hours. Sehgal identified resistance for Ethereum between $3,150 and $3,250, with support set at $2,880. The altcoin market mirrored the general downturn, with many coins facing considerable losses. Monero experienced a significant decline, losing 19 percent in market capitalization. Other significant altcoins, such as Hyperliquid, Immutable, Morpho, Cosmos, Quant, Chiliz, Dash, Render, Polkadot, TRON, Solana, and Aave, experienced drops between 4 percent and 9 percent. On the other hand, a number of assets managed to achieve increases even amid the market chaos. LayerZero, Canton, Story, PAX Gold, Tether Gold, Tezos, Bitcoin Cash, and several others saw gains reaching as high as 12 per cent, as reported.
