Crypto Market Plunges as Bitcoin Falls Below $100,000 Amid Global Sell-Off

The global crypto market came under intense selling pressure on Wednesday, mirroring sharp declines in equities, particularly the tech-heavy Nasdaq. Bitcoin tumbled over 7%, briefly dipping below the $100,000 mark before recovering to around $102,000, still down nearly 5%. Ethereum slumped 16% to about $3,060, erasing all 2025 gains and trading nearly 38% below its all-time high of $4,953.

Analysts attributed the sell-off to geopolitical tensions, weak institutional demand, and a global risk-off sentiment. The total crypto market cap fell 5% to $3.39 trillion, while trading volumes surged 55% to $315 billion. The Fear & Greed Index dropped to 20, signaling deep fear.

Edul Patel, CEO of Mudrex, said Bitcoin’s stabilization above $102,000 could mark the start of a trend reversal, noting that similar corrections have historically preceded major rallies. Meanwhile, Giottus CEO Vikram Subburaj cited ETF outflows, long-term holder selling, and Fed caution on rate cuts as key triggers, though he emphasized that the market structure remains intact.

Experts caution that rising leverage and forced liquidations could deepen volatility, warning of a potential “Crypto Crash 2.0” if macroeconomic headwinds persist.