The cryptocurrency market experienced a sharp sell-off over the past 24 hours, with total market capitalization shedding more than 9% and falling below the $2 trillion threshold. According to CoinMarketCap data, most crypto assets recorded losses between 7% and 15%. Bitcoin (BTC) fell from above $48,000 on Sunday to a low of $42,660 — a decline of 8.9% — and is now trading around $43,000. Ethereum (ETH) dropped 10.3%, breaking below $3,200 and currently sitting near the $3,000 level.
Major Coins in Red; XRP Worst Performer
Among the top ten cryptocurrencies by market capitalization, XRP suffered the steepest decline, losing 13.8% in 24 hours. Bitcoin’s 8.9% drop was actually the smallest in the top ten. Ethereum fell around 10.3%. After Bitcoin slipped below $45,000, eToro crypto analyst Simon Peters commented: “Bitcoin and ether both experienced a weekend slip after a week of climbing back to previous highs. BTC began the week below $45,000 after the flash crash of the week before. Having risen across the week to near $49,000 levels, the price collapsed again on Sunday, falling away to now trade around $45,500. ETH began the week trading around $3,200 before rising to a high of $3,652 on Thursday. The token began a decline earlier than bitcoin though, falling away from Thursday and across the weekend to now trade below $3,200, a 13% decline.”
Notably, Cosmos (ATOM) bucked the trend, losing only 0.9% and still up over 9% on the weekly chart. The biggest loser among major altcoins was Algorand (ALGO), which sank 16.6% over the past 24 hours.
Global Risk-Off Sentiment: Evergrande Creditor Crisis and U.S. Debt Ceiling
The crypto meltdown mirrors a broader rout in global risk assets. Asian stocks tumbled on Monday amid fears that Chinese property giant Evergrande may default on its debt, sending its shares to an 11-year low. Speculators are drawing comparisons to the Lehman Brothers collapse in 2008. Meanwhile, U.S. Treasury Secretary Janet Yellen warned that the U.S. could default on its financial obligations if Congress fails to raise the debt ceiling, potentially triggering another financial crisis. Global equities, commodities, and cryptocurrencies all came under selling pressure as investors fled to safe havens like the U.S. dollar and gold.
Analysts believe the panic over Evergrande’s contagion risk is amplifying volatility in crypto markets, which are highly sensitive to liquidity and risk sentiment. However, some view the correction as a healthy reset that could attract long-term buyers. At press time, Bitcoin is finding initial support around $42,600, but the near-term direction will depend on whether macro fears subside.