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Bitcoin price slipped below the critical $100,000 level, one of the largest intraday declines in May, with the US shutdown.
Altcoins like Ethereum, Solana, XRP, and Cardano suffered even bigger losses, indicating a broader risk-off mood in the crypto market.
Today's slump is caused by macro factors like vanishing rate-cut expectations, liquidity shortages, and treasury concerns.
Crypto prices today show a downward trend. Bitcoin price fell below the critical $100,000 mark at the time of writing, and other altcoins followed suit. The broader cryptocurrency market was seeing a steep slide as risk assets came under pressure with changing economic fortunes. The US shutdown and Fed rate cut expectations have increased volatility in the market.
Here’s what happened with crypto prices today based on CoinMarketCap data.
Bitcoin price was at $97,876.84, representing a 4.04% drop within the last 24 hours. Having briefly reached $104,000 overnight, Bitcoin shed those gains during US trading hours and fell below $100,000 in the afternoon. The leading cryptocurrency has a market capitalization of $1.95 trillion with 19.94 million BTC in circulation. This represents one of the sharpest intraday rejections Bitcoin has seen this month, extending a multi-week pattern of weakness during the US shutdown.
Ethereum price decline was even more dramatic, down 8.61% to $3,178.79. Having a market capitalization of $383.6 billion with 120.69 million ETH in circulation, the losses for Ethereum outpaced Bitcoin's, proving that crypto prices today are hitting altcoins particularly hard.
Solana price also faced significant pressure, dropping 7.47% to $142.56. Solana has a market cap of $78.9 billion and 554.02 million SOL tokens in circulation. XRP price wasn't an exception either, dropping 7.06% to $2.29. Despite the drop, the token has a market cap of $138 billion with 60.1 billion tokens circulating.
Other top cryptocurrencies showed similar weakness:
BNB was down 4.66% to $916.77, with a market cap of $126.2 billion
Dogecoin dipped 6.49% at $0.1633 with a market capitalization of $24.7 billion
Cardano fell 7.40% to $0.5182, with a market cap of $18.5 billion.
TRON decreased 2.24% to $0.2892 with a market capitalization of $27.3 billion.
Stablecoins did not budge. USDT stayed at $0.9997 and USDC at $1, neither of these showing much variation, offering the much-needed liquidity in a volatile market.
Also Read: Crypto Prices Today: Bitcoin Price Dips as XRP Climbs 2.8% and DOGE Gains 1.59%
Several reasons are contributing to today's crypto market decline, with macroeconomic conditions playing a major role.
Traders have sharply dialed back expectations of a December interest rate cut from the Federal Reserve. Markets are currently pricing in odds of roughly 50/50 of a 25 basis point cut, down sharply from earlier expectations. This is taking away a major driver that had been supporting Bitcoin and other risk assets. That sentiment was echoed in the wider stock market, where the Nasdaq declined 2% and the S&P 500 decreased by 1.3%.
The recent US government shutdown is causing a severe liquidity shortage that is pressuring risk assets. The federal government posted a $198 billion surplus in September, while the October number could be even larger due to the shutdown, setting up one of the driest liquidity periods in months.
Market analyst Mel Mattison commented that the crypto prices today were suffering from this liquidity crunch, which is the opposite of the usual deficit-fueled liquidity that tends to support the markets.
Mattison does expect conditions to reverse fairly quickly: "The floodgates are about to open. The administration is going to unleash a tsunami of fiscal spending in the coming quarters," he said. He cited this as a reason markets could stay volatile for another week or two before rallying.
Crypto-linked stocks saw brutal losses, with mining companies that are directly involved in AI infrastructure and data centers the biggest losers:
Bitdeer (BTDR): -19%
Bitfarms (BITF): Down 13%
Cipher Mining CIFR - IREN down more than 10% each
Broader crypto equities such as Galaxy, Bullish, Gemini, and Robinhood fell between 7-8% each.
"Crypto is more connected to macroeconomics now than at any point in the past," said Paul Howard, senior director at Wincent.
Beyond macro factors, fears about digital asset treasuries are also weighing on crypto news and prices. These companies have been a big source of buying pressure over the past year, using credit markets to fund their crypto purchases through convertible bonds and debt.
Greg Magadini, director of derivatives at Amberdata, said that there is increased competition for capital from sovereign governments and AI ventures. In the event of a credit market tightening, these firms would not be able to refinance their debt without being forced to sell their coin holdings. "As crypto gets sold, the next layer of DATs may be forced to sell, creating a potential downward spiral," Magadini said, especially for firms holding volatile altcoins.
Magadini also added that much of the bullish crypto news has already been priced in, leaving Bitcoin vulnerable to negative developments. "Bitcoin traders have been positioned bullishly for an end-of-year rally, but positioning is likely being flushed as the market was overly long with no one to buy next," he said.
Interestingly, while crypto prices today remain weak, precious metals have found strength. Gold and silver have climbed 4% and 9%, respectively this month, even as the dollar index rally loses momentum.
Also Read: Crypto News Today: Japan Weighs New Crypto Rules as Corporate Losses Grow
Crypto prices today showed bearish sentiments. With just six weeks remaining in 2025, some analysts still think Bitcoin may have reached its peak for the year. Paul Howard thinks ‘a steady but muted rise through next year,’ and not explosive gains, are in store. On the other hand, crypto prices could rebound within weeks if liquidity returns as expected with increased fiscal spending. Investors should keep an eye on global cues, especially the US markets, to gauge the market’s next move.
1. Why is the crypto market down today?
The reason for this deterioration is a combination of weakening macroeconomic conditions, a decline in expectations of a rate cut by the Federal Reserve, and sustained liquidity shortages due to the US government shutdown. All these factors together force investors to continue abandoning risk assets, which has resulted in broad declines across both Bitcoin and major altcoins.
2. Why did Bitcoin fall below $100,000 again?
Bitcoin fell below $100,000 as traders pulled back expectations of near-term rate cuts, weakening sentiment across global markets. At the same time, US trading sessions have continued to see steady selling pressure, resulting in sharp intraday reversals and high volatility.
3. Are altcoins falling more than Bitcoin today?
Yes, Altcoins such as Ethereum, Solana, XRP, Cardano, and Dogecoin saw deeper losses than Bitcoin. Usually carrying higher volatility, Altcoins tend to fall harder during market downturns when traders quickly reduce risk exposure.
4. When will the crypto market begin to recover?
According to analysts, the market would eventually stabilize when liquidity resumes. Since the government is expected to increase fiscal spending after the shutdown, liquidity conditions may improve in weeks from now, thus triggering an upward market rebound; however, some volatility will still be experienced in the short run.
5. Are stablecoins affected by today's crypto crash?
The prices of other stablecoins like USDT and USDC did not change much because they are pegged to the US dollar and, therefore, less susceptible to market volatility. Many investors move money into stablecoins during market downturns to preserve capital and lower price risk.
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