The crypto market fell sharply today, wiping out billions from major assets within hours. Bitcoin fell to around $88,650, down more than 12% this week, while Ethereum fell to $2,905 after a 14% decline in seven days. XRP also retreated to $2.05, pushing weekly losses to nearly 16%. The global market capitalization is now almost $3.06 trillion, showing how widespread selling pressure has become.
Bitcoin leads the slide as liquidity tightens
Bitcoin’s decline appears to be driven by a mix of liquidations, profit-taking and renewed macro uncertainty. With a trading volume of over $86 billion, aggressive swings show just how nervous traders are.
Analysts say BTC’s drop below $90,000 has triggered automatic sell orders, causing prices to fall and dragging the rest of the market along with it. Ethereum and Solana followed the same pattern as capital quickly moved to stablecoins like USDT and USDC.
XRP Drops as ETF Frenzy Meets Market Reality
XRP’s drop to $2.05 comes at a time when excitement around new XRP ETFs is at its peak. Despite the strong inflows and heavy trading activity, the broader sense of risk is overwhelming the individual catalysts.
XRP’s seven-day chart shows a steady decline as investors take profits ahead of the upcoming ETF launches and market volatility spikes.
Macroeconomic shock: US unemployment rises
The biggest cause of today’s crash is the surprising rise in US unemployment to 4.4%, the highest level in four years. This figure shows that the labor market is weakening faster than expected, raising concerns about a slowdown in economic activity. But in a twist, US stock market futures are soaring at the same time.
Why Are Stocks Pumping While Crypto Dumps?
The unusual response comes down to the Federal Reserve’s policy expectations. A weakening labor market is pushing the Fed closer to a rate cut. Rate cuts are generally bullish for risky assets, but markets often fall in the short term before stabilizing. Crypto reacts with fear, while stocks, especially tech, react positively.
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