The crypto market extended its selloff on Tuesday, with Bitcoin falling below $73,000 for the first time since November 2024, triggering sharp swings across major digital assets. The move came despite a lack of any major negative headline, even as President Donald Trump reported an 'excellent' phone call with Chinese President Xi Jinping.
Bitcoin whipsaws $3,100 in 25 minutes, liquidating both longs and shorts
Bitcoin briefly dropped nearly $1,900 in just 25 minutes, wiping out around $70 million in long positions. Minutes later, prices rebounded by more than $1,200, liquidating another $15 million in short positions — a sign of extreme volatility rather than a clear trend. Analysts said the sharp moves were amplified by forced liquidations as leveraged traders got pushed out of positions.
No single headline trigger; market ignores positive trade news
The selloff continued even after Trump said China may increase U.S. agricultural purchases, underscoring that today's crypto weakness appears driven more by positioning and sentiment than headlines. The crypto market largely ignored the update, with losses accelerating.
Altcoins bleed: ETH near $2,100, XRP at $1.51, majors down 5-10%
Losses were not limited to Bitcoin. Ethereum slipped toward $2,100, XRP fell to around $1.51, and Solana, BNB, and other major tokens posted daily declines of 5% to 10%. The total crypto market value dropped to about $2.48 trillion, down more than 3.5% in 24 hours.
Fear and Greed Index stays deep in 'extreme fear'; oversold but no guarantee of rebound
Market indicators show confidence remains weak. The Crypto Fear and Greed Index stayed deep in “extreme fear” territory, while momentum indicators suggest the market is oversold. However, analysts warn that oversold conditions do not guarantee an immediate rebound. The key question is whether Bitcoin can stabilize above the $72,000–$73,000 range; a sustained break below that zone could open the door to further losses, while consolidation may allow volatility to cool.