The global cryptocurrency market is once again facing massive selling pressure after Bitcoin (BTC) failed to break past the psychological resistance level of $87,000, subsequently plunging sharply below the $84,000 mark during today's trading session. The failure to sustain bullish momentum triggered an aggressive price correction by sellers. This drove the price of BTC down by more than $2,000 within minutes to a low of around $83,600, before it struggled to hold the $84,000 level.
This corrective pressure erased the short-term rally previously sparked by U.S. macroeconomic data. Late last week, favorable Personal Consumption Expenditures (PCE) data and a weak U.S. labor market report (Non-Farm Payrolls/NFP) had driven prices past the $86,000 and $87,000 marks. However, a lack of sustained buying volume caused the $86,600 and $87,000 resistance levels to act as strong zones of price rejection.
Bitcoin’s sharp decline also dragged the entire altcoin market into a severe correction phase. Ethereum (ETH), the second-largest cryptocurrency, recorded a drop of over 4%, retreating below the $2,600 level, while XRP lost its critical $1.50 support level after sliding to $1.46. Other high-profile tokens, such as HYPE, are also at risk of breaking below the key $90 support level. Mid-cap and decentralized alternative cryptocurrencies recorded steeper declines. Polkadot (DOT) and Mantle (MNT) led the losses, each plunging between 9% and 10%, accompanied by significant drops in Uniswap (UNI -8.5%), Cardano (ADA -6.5%), Shiba Inu (SHIB -6%), and SUI. Most other major tokens, such as BNB, Solana (SOL), and Tron (TRX), also traded in the red.
As a result of this rapid sell-off, the cryptocurrency market as a whole experienced a significant loss in capital. According to CoinMarketCap (CMC) data, the global crypto market capitalization shed over $60 billion within 24 hours, shrinking to $2.850 trillion, while Bitcoin's market capitalization contracted to $1.680 trillion, with its market dominance remaining steady at 59%.
