Key Reasons Behind BTC, ETH and Altcoin Slide

Key Insights:

• Crypto market cap fell by $71B as uncertainty around peace talks triggered broad sell-offs
• Liquidations increased after sharp rallies, pressuring leveraged positions and altcoins
• Reduced odds of a U.S. rate cut in September added to bearish momentum

Crypto prices dropped sharply today as global risk sentiment weakened. Ongoing peace discussions involving Trump, Zelensky, and EU leaders created market-wide uncertainty.

The mixed expectations around a possible Russia-Ukraine peace deal introduced geopolitical instability. Investors pulled back from high-risk assets, driving BTC, ETH, and altcoins lower.

In parallel, updated U.S. PPI data lowered expectations for a Federal Reserve rate cut in September. Odds dropped from 100% to 84.8%, putting additional pressure on digital assets.

Liquidations Intensify Market Downturn

Ethereum jumped over 50% in two weeks, while many altcoins rallied up to 100%. These rapid gains led to a spike in high-leverage long positions.

As price momentum faded, exchanges began liquidating these positions, accelerating the downturn. This flush-out triggered forced selling, contributing to broader market losses.

The total crypto market cap fell by $71 billion in 24 hours, now at $3.85 trillion. Traders are watching the $3.81 trillion level as the next major support zone.

BTC Holds Support, Traders Watch Technical Levels

Bitcoin dropped to $114,723 but remained above its key $114,000 support level. A sustained breakdown could push the price toward $112k.

The Relative Strength Index dipped below 50, signaling bearish momentum. Weakness across altcoins confirmed growing downside pressure across the broader market.

If Bitcoin rebounds from current levels, a move to $118k remains possible. A breakout could flip resistance into support and reopen the path toward $120,000.