Crypto market falls sharply amid institutional selling and Ethereum crisis
Despite current volatility, financial analysts forecast bullish outlooks for Bitcoin and Ethereum through 2025 due to growing adoption and regulation.
The cryptocurrency market faced a significant correction on Thursday. A broad selloff dragged Bitcoin down 2.3% to around $117,241.
Ethereum fell over 6% to test key support near $3,515, while XRP plunged 17%, breaking below the crucial $3.00 level. Dogecoin suffered the most significant loss among major altcoins, crashing 18.5% amid heavy institutional liquidation.
Analysts attribute the decline to coordinated selling by institutional investors, worsened by a surge in Ethereum validator exits and ongoing macroeconomic uncertainty.
Bitcoin showed relative strength compared to other tokens, demonstrating its role as a haven amid market stress. Despite the pullback, bitcoin’s dominance increased as investors rotated away from riskier altcoins.
Ethereum’s challenges are acute, with over $2.3 billion worth of ETH awaiting unstaking amid the longest validator exit queue in 18 months. While some validators are exiting, many are entering the staking system, suggesting complex market dynamics rather than outright abandonment.
The sharp declines reflect a mix of large-scale liquidations, institutional portfolio rebalancing, and geopolitical pressures driving risk-off sentiment. Speculative assets like Dogecoin were hit hardest, highlighting the vulnerability of meme coins during downturns.
Despite short-term volatility, major financial firms remain bullish on Bitcoin, Ethereum, and XRP, citing technological adoption and regulatory progress as drivers for 2025 growth.
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