Crypto Market Faces Volatility as Altcoins Plunge

Crypto losses accelerated as Bitcoin broke below the key $85,000 support level, dipping to $84,500 before a slight rebound. This decline triggered over $550 million in liquidations across derivatives markets, impacting altcoins significantly.

Ether fell below $2,800, while Solana dropped to under $120, marking its lowest point since April. Analysts at AmberData noted that the loss of the $85,000 support could lead to a deeper correction towards $80,000.

XRP also struggled, trading at $1.84, failing to reclaim the $2.00 level, with high trading volumes indicating distribution rather than panic selling. The total cryptocurrency market cap has now fallen to an eight-month low of $2.93 trillion, down approximately 33% from its all-time high in October.

Market sentiment is grim, with the Fear & Greed Index at extreme fear levels, suggesting a bearish outlook and further short-term volatility ahead, according to Santiment and Cointelegraph.