Why Are Bitcoin, Ethereum and XRP Prices Going Down Today Again?

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After a brief recovery yesterday, the crypto market has turned red again.

On Monday, prices moved higher after comments from US President Donald Trump, who said he supports crypto and believes the US must lead in digital assets or risk falling behind China. That statement helped lift market sentiment for a few hours.

But the bounce did not last.

Crypto Market Slips Back Into the Red

At the time of writing, the total crypto market value has fallen 3.95% in the last 24 hours, dropping to $2.62 trillion.

• Market sentiment remains weak
  
• The Fear & Greed Index is at 17, showing extreme fear
  
• Most major coins are still down sharply over the past week
  

Bitcoin, Ethereum and XRP are all trading lower again, along with most large altcoins.

Bitcoin Is Driving the Decline

Bitcoin continues to lead the market lower.

• Bitcoin dominance is near 59%
  
• This means the entire market is closely following Bitcoin’s price moves
  
• When Bitcoin weakens, most other coins fall with it
  

Bitcoin is down more than 11% over the past seven days, keeping pressure on the broader market. Over $55 million worth of long positions were wiped out in just two hours as prices suddenly dropped.

The selloff came despite positive news around the U.S. government shutdown. BTC is currently down by more than 4%.

Ethereum Is Making Things Worse

Ethereum has fallen even harder than Bitcoin.

• Ethereum is down more than 22% in the last week
  
• This sharp drop has hurt confidence across the altcoin market
  
• Many traders remain bearish, with little buying interest visible
  

Because Ethereum has such a large market value, its decline has added to the overall market losses.

Market Is Ignoring Stocks and Gold

Crypto is currently moving on its own, not in line with traditional markets.

• Correlation with the S&P 500 is low
  
• Correlation with gold is negative
  
• This shows crypto is being driven mainly by internal fear and selling pressure
  

What Happens Next?

The market is at a critical level.

• Holding above $2.59 trillion in total market value is important
  
• A break below this level could lead to another sharp drop
  
• Traders are watching US Federal Reserve signals and ETF fund flows for direction
  

Despite supportive comments from political leaders, crypto prices are falling again due to:

• Continued Bitcoin weakness
  
• Heavy losses in Ethereum
  
• Extreme fear among investors
  
• Lack of strong buying demand
  

Until Bitcoin stabilizes and sentiment improves, the market is likely to remain volatile.