Cryptocurrency market slides as Bitcoin hits two-month low and total market value falls below $3 trillion

Cryptocurrency prices declined broadly on Friday, pushing total market capitalization below the $3 trillion mark, as investor risk appetite weakened following the US Federal Reserve’s decision to keep interest rates unchanged after three consecutive cuts — a move that was widely expected by markets.

The selloff was led by Bitcoin, which came under heavy pressure amid continued capital outflows from US-listed exchange-traded funds. The world’s largest cryptocurrency fell 3.9% to around $81,102, marking its lowest level in nearly two months. The decline leaves Bitcoin down more than 34% from its record high reached in October 2024.

Losses spread across the broader digital asset market. Ethereum slipped 2.55% to trade near $2,724, while Ripple fell 3.2% to $1.7431.

The sharp downturn triggered widespread liquidations, with total long-position liquidations across the cryptocurrency market exceeding $1.5 billion over the past 24 hours, highlighting the extent of leveraged positioning that had built up during the previous rally.

Market analysts noted that persistent ETF outflows, tighter global financial conditions, and fading risk appetite continue to weigh heavily on digital assets. Without a clear near-term catalyst, many expect pressure on cryptocurrencies to persist in the coming period.

Ripple also faced additional selling pressure from so-called “whales” — large wallet holders controlling between 100 million and 1 billion tokens — with estimated disposals totaling nearly $800 million.

However, some stability emerged from mid-sized holders, with wallets containing between 1 million and 100 million tokens absorbing much of the selling activity. This buying interest helped prevent sharper price swings, despite the broader market weakness.

What Does This Mean for Me?

Overall, the latest price action underscores the fragile sentiment across cryptocurrency markets, as investors remain cautious amid uncertain monetary conditions and reduced appetite for high-risk assets.