The crypto market just took a serious hit. Over $63 billion vanished in 24 hours, dragging total market capitalization down to $3.75 trillion.
Bitcoin can’t catch a break either. The leading cryptocurrency sits below $115,000, failing to generate meaningful momentum. Meanwhile, Ethena (ENA) crashed 9% to become today’s worst-performing altcoin. So what’s driving this widespread selloff?
Bitcoin Loses Critical Ground
Bitcoin’s price stalled at $112,712 at press time. That’s well below the $115,000 resistance level it’s been testing for days. Trading volume dropped significantly, suggesting traders are sitting on the sidelines waiting for clearer signals.
The next support level sits at $112,500. If Bitcoin breaks below that threshold, panic selling could accelerate. A deeper drop toward $110,000 becomes increasingly likely in that scenario. Plus, sustained weakness at this level would hand short-term market control to bearish traders.
However, renewed buying pressure could flip the script entirely. Strong institutional demand might push Bitcoin past $115,000 and toward $117,261. That would invalidate the bearish outlook and signal the start of a fresh recovery phase.
Market Sentiment Turns Cautious
The total crypto market capitalization fell from $3.81 trillion to $3.75 trillion overnight. This decline reflects cooling investor enthusiasm across the board. Major assets failed to generate positive momentum, leaving traders uncertain about near-term direction.
Right now, the market holds above $3.73 trillion support. But that floor looks increasingly fragile. Sustained selling pressure could push capitalization down to $3.67 trillion, exposing just how weak current sentiment has become.
Still, markets can reverse quickly. If global liquidity improves and institutional money flows back in, a rebound toward $3.81 trillion remains possible. The key question is whether buyers have the conviction to step in at these levels.
Ethena Takes the Biggest Hit
Ethena emerged as today’s weakest performer, shedding nearly 9% in value. The token dropped to $0.456, hovering just above critical $0.436 support. Losing that level would erase recent gains and potentially trigger further downside.
Technical indicators paint a concerning picture too. A death cross appears to be forming, typically signaling bearish momentum ahead. Yet the relatively modest selling volume suggests traders haven’t completely abandoned the token. They’re waiting to see if support holds.
If Ethena bounces from $0.436, it could reclaim $0.466 as a first target. A stronger rally might even reach $0.519, invalidating the bearish setup entirely. But that recovery depends on renewed buyer interest materializing soon.
What Changed Overnight
Several factors converged to pressure crypto prices lower. Weakening global demand played a significant role, as economic uncertainty made risk assets less attractive. Institutional flows slowed, removing a key source of buying pressure that had supported recent rallies.
Bitcoin’s inability to break through $115,000 also disappointed bullish traders. Many expected the resistance to crack after weeks of consolidation. Instead, repeated rejections at this level drained confidence and triggered profit-taking across the market.
Meanwhile, altcoins like Ethena faced their own challenges. Token-specific issues combined with broader market weakness to amplify losses. The result was a cascade of selling that pushed the entire market cap lower in a short timeframe.
The Bigger Picture
Short-term price action feels bearish right now. But crypto markets are notoriously volatile and can reverse direction quickly. The question isn’t whether prices will recover eventually, but when and from what levels.
Bitcoin’s ability to hold $112,500 will determine the next move. A decisive break below that support could spark a sharper selloff toward $110,000. Conversely, strong buying above this level might set the stage for another run at $115,000.
For the broader market, $3.73 trillion represents the line in the sand. Lose that support and sentiment could deteriorate further. Hold it and stabilize, and buyers might regain confidence. The next few days will reveal which scenario plays out.
One thing’s clear though. Today’s $63 billion drop serves as a reminder that crypto volatility works both ways. Markets that rise fast can fall just as quickly when momentum shifts.