Crypto Market Selloff Deepens: $640M Liquidated as Bitcoin, Ethereum, and XRP Prices Slide

The global crypto market suffered a sharp downturn on Wednesday, with over $640 million in leveraged positions liquidated as traders rushed to exit amid profit-taking and ETF ￰0￱ to data from Coinglass , Bitcoin (BTC) and Ethereum (ETH) bore the brunt of the wipeout, facing $155 million and $180 million in liquidations respectively, while altcoins like XRP, Solana (SOL), and BNB also saw heavy ￰1￱ total crypto market capitalization fell 1.9% to $4.18 trillion, with trading volumes rising to $240 billion, a sign that forced selling and defensive repositioning dominated the ￰2￱ Fear & Greed Index dropped from 62 to a neutral 55, reflecting fading risk appetite after weeks of aggressive buying.

Bitcoin, Ethereum, and XRP Face Technical Breakdown Bitcoin dropped 1.4% to $122,400 after failing to hold its record high above $126,000, triggering a wave of automated selling as exchange inflows surged past $5.7 ￰3￱ point to a cooling RSI and rejection near upper Bollinger Bands as signs that short-term momentum has ￰4￱ fell nearly 4.5% to around $4,450, its largest daily drop in over a month, as traders rotated capital back into Bitcoin ETFs and stop-loss orders accelerated the decline. XRP, meanwhile, tumbled 3.5%, slipping below key support at $2.90, with Coinglass reporting a 4,300% spike in liquidation imbalance, a clear sign that overleveraged longs were flushed ￰5￱ the selloff, technical analysts suggest the pullback may serve as a leverage reset, setting the stage for more sustainable upside later this ￰6￱ Bitcoin’s RSI nearing 42 and Ethereum hovering around oversold zones, some traders are eyeing the $118K–$121K BTC region and $4,200 ETH level as potential reaccumulation ￰7￱ Outflows and Macro Pressure Add Fuel to the Decline Market data shows Grayscale’s Bitcoin ETF recorded $28.6 million in net outflows, snapping its prior streak of inflows and contributing to bearish sentiment.

Simultaneously, perpetual futures volume surged 22% to $540 trillion, showing heightened volatility and defensive ￰8￱ to the macro headwinds, the ￰9￱ index (DXY) hit a two-month high, and 10-year Treasury yields hovered around 4.13%, tightening financial conditions just ahead of the FOMC minutes ￰10￱ factors reinforced the shift toward risk-off positioning across both traditional and crypto ￰11￱ more than $640 million liquidated, Bitcoin, Ethereum, and XRP have entered a crucial technical ￰12￱ buyers fail to defend near-term supports, the selloff could deepen, but a bounce from these levels could mark the start of a new accumulation phase heading into late ￰13￱ image from ChatGPT, ETHUSD chart from Tradingview