The crypto market kicked off the week on a shaky note, with a sharp 3% drop in total market capitalization over just 24 hours. Red candles dominated trading charts as investors scrambled to reassess their positions. Mounting global trade tensions and fading momentum from recent rallies have combined to pressure both major assets and altcoins alike.
As volatility surges, traders are closely watching key support levels across the board. While headline cryptocurrencies like Bitcoin and Ethereum saw moderate declines, some smaller-cap digital assets experienced devastating losses—some falling by more than 80%. This sudden downturn serves as a stark reminder of the inherent risks in crypto investing, especially during periods of macroeconomic uncertainty.
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Bitcoin, Ethereum, and XRP All Take a Hit
Bitcoin (BTC) dipped below the $84,000 mark, now trading at **$83,100**. Though the decline appears modest compared to more volatile altcoins, even this small pullback has shaken investor confidence and raised concerns about further downside risks. With BTC failing to hold key resistance levels, technical indicators suggest bearish sentiment may persist in the short term.
Ethereum (ETH) fared worse, plunging 4% to **$1,580** and breaking below the psychologically important $1,600 threshold. This reversal erases much of ETH’s recent recovery and places it back into a bearish trading pattern. Analysts are now monitoring on-chain data for signs of large wallet movements or exchange inflows that could signal further selling pressure.
Meanwhile, XRP also dropped 4%, edging dangerously close to the $2.00 level. After a brief rebound earlier in the week, XRP now faces renewed selling pressure. If broader market conditions deteriorate further, this altcoin could see additional downside, particularly if it breaks below critical support zones.
Market watchers emphasize that these moves reflect not just technical corrections but also growing macroeconomic headwinds—from geopolitical tensions to shifting monetary policy expectations—that are impacting risk assets across the board.
The Top 5 Cryptocurrencies That Crashed Hardest
While major cryptos struggled, several altcoins suffered catastrophic losses in the past 24 hours. Here are the five biggest losers, based on price performance:
1. MANTRA (OM) – Down 80.19%
MANTRA led the sell-off with a staggering 80.19% drop in just one day—the most severe single-day decline recorded so far in 2025. Once riding high on ecosystem expansion news, OM’s sudden collapse has sparked widespread speculation about potential insider selling or a possible "rug pull." Trading volume spiked abnormally before the crash, suggesting coordinated dumping by large holders.
With market cap plunging from $6 billion to under $1.2 billion overnight, trust in the project has been severely damaged. Investors are urging caution until more transparency emerges from the development team.
2. Movement (MOVE) – Down 12.74%
Movement, a Layer-1 blockchain built for gaming and decentralized applications, saw its token fall 12.74% to $0.2992. Despite positive long-term fundamentals and recent partnerships, MOVE couldn’t escape the broader market selloff. Its high beta to Bitcoin made it vulnerable during risk-off phases.
Still, analysts note that MOVE’s fundamentals remain intact, and the current dip may present a strategic entry point for long-term investors who believe in its ecosystem growth.
3. Walrus (WAL) – Down 11.59%
Walrus, a meme-inspired token with a growing community presence, dropped 11.59% to $0.4563. Known for its viral marketing and NFT integrations, WAL had gained traction in Q1 2025 before succumbing to profit-taking and market panic.
Unlike many other meme coins, Walrus maintains active developer updates and roadmap progress, which could support a recovery if sentiment improves.
4. EOS – Down 11.41%
Once a top-tier smart contract platform, EOS fell 11.41% to $0.6090. Despite showing resilience earlier in the year with +17.53% gains over seven days, EOS couldn’t withstand the latest wave of selling pressure.
Long considered undervalued by some analysts, EOS continues to battle low developer activity and declining exchange listings—factors that limit its upside potential despite attractive valuations.
5. Ethena (ENA) – Down 11.08%
Ethena, a derivatives-focused protocol aiming to create synthetic dollar yields, saw ENA drop 11.08% to $0.3078. The decline coincided with reduced trading volume across its perpetual futures markets and growing scrutiny over its reserve transparency.
While Ethena’s innovative model attracted significant attention in early 2025, regulatory concerns and market volatility have made investors wary of its sustainability.
Why Did These Cryptos Crash?
Several factors contributed to the widespread sell-off:
- Profit-taking after rallies: Many of these tokens saw strong gains in previous weeks, making them prime targets for short-term traders locking in profits.
- Liquidity crunches: Low float tokens like OM experienced extreme volatility due to limited supply availability.
- Market sentiment shift: Rising fear and uncertainty index (F&G Index) readings indicate growing risk aversion.
- Macro pressures: Global trade tensions and potential rate hikes have made investors cautious about speculative assets.
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What’s Next After the Crypto Market Crash?
The big question now is whether this correction is a temporary pause or the start of a deeper bearish trend. The next 48 hours will be crucial for determining market direction.
If Bitcoin holds above $82,500 and Ethereum stabilizes near $1,550, we might see a recovery fueled by bargain hunters and institutional buying. However, failure to defend these levels could trigger stop-loss cascades and accelerate downward momentum.
On-chain metrics offer mixed signals:
- Exchange outflows remain elevated—often a bullish sign.
- But funding rates for perpetual contracts have turned negative across major exchanges.
Additionally, any de-escalation in global trade disputes could act as a catalyst for a swift rebound. Conversely, further escalation would likely deepen investor caution.
Frequently Asked Questions (FAQ)
Q: What causes sudden crypto crashes like this?
A: Sudden drops are often triggered by a mix of technical factors (like broken support levels), macroeconomic news (such as trade tensions), and behavioral trends (like panic selling or whale dumps).
Q: Is it safe to buy crypto during a crash?
A: It can be an opportunity—but only if you’ve done your research. Focus on projects with strong fundamentals, transparent teams, and real-world use cases. Avoid chasing falling knives without proper risk management.
Q: How can I protect my investments during volatility?
A: Use stop-loss orders, diversify across asset classes, avoid over-leveraging, and keep a portion of your portfolio in stablecoins during uncertain times.
Q: Can a single coin like MANTRA dragging down the whole market?
A: Not directly—but extreme moves in high-profile altcoins can hurt overall sentiment and trigger broader risk-off behavior among traders.
Q: Are all altcoins doomed when Bitcoin drops?
A: Not always. While most altcoins correlate strongly with BTC during sell-offs, some resilient projects with strong utility may outperform or recover faster post-crash.
The current downturn underscores the importance of due diligence and emotional discipline in crypto investing. While sharp corrections can be painful, they also create opportunities for informed investors who stay calm and strategic.
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