Crypto markets sell-off deepens as macro and geopolitical risks mount

The cryptocurrency market extended its downturn on Wednesday, with major assets falling as macroeconomic headwinds and geopolitical tensions weighed on investor sentiment. Bitcoin slipped over 3 per cent, trading around $89,000, while Ethereum saw a steeper decline of nearly 7 per cent, falling to $2,970. Both assets marked their lowest levels in two weeks. 

 

The downturn followed broader weakness in global equities after renewed trade tensions between the US and Europe, triggered by President Donald Trump’s latest tariff threats, which raised fears of a potential trade conflict.

 

The market’s bearish sentiment was further exacerbated by rising yields on U.S. and Japanese bonds, fueling a risk-off atmosphere. In the span of just 24 hours, more than $1 billion worth of crypto positions were liquidated. Analysts attributed the sell-off to leveraged unwinding, ETF outflows, and a shift in investor focus towards traditional safe-haven assets like gold and silver, both of which hit record highs.

 

 

“Over the past 24 hours, global markets have remained cautious amid ongoing geopolitical and trade-related uncertainty, which continues to impact overall risk sentiment. This has pressured equities and renewed interest in traditional safe-haven assets like gold. Crypto markets, too, have reflected this caution—not through panic selling, but through consolidation, lower leverage, and reduced risk-taking,” said Nischal Shetty, Founder of WazirX.

 

However, Shetty maintained that this market phase does not alter the long-term outlook for crypto. “As the asset class becomes more integrated into global finance, it naturally reacts to macro headlines. At the same time, interest in crypto as an alternative financial system remains intact. As global clarity improves, market confidence is likely to adjust accordingly,” he added.

Bitcoin finds support at $88,000

Bitcoin was trading around the $89,000 level at the time of writing. The largest digital asset by market capitalisation was priced at $89,361, down 2.73 per cent, with a 24-hour trading volume of $56.96 billion, according to CoinMarketCap. The asset fluctuated between $87,814 and $91,997 in the past 24 hours. Notably, Bitcoin remains around 29 per cent below its all-time high of $126,198, set on October 7, 2025.

 

From a technical perspective, Riya Sehgal, research analyst at Delta Exchange, noted that Bitcoin is trading below key short-term moving averages, with resistance at $92,800 and support near $88,000. “Traders should brace for continued volatility, as macroeconomic uncertainty, bond market stress, and U.S.–EU trade headlines continue to influence sentiment. A breakout above resistance could stabilize momentum, but for now, risk aversion is dominant,” she said.

 

On-chain data suggests that sell-side pressure is easing. Akshat Siddhant, lead quant analyst at Mudrex, highlighted that spot volumes have risen from $8.8 billion to $9.3 billion, and the net buy-sell imbalance has expanded to $81.2 million. “These signals suggest an aggressive reduction in sell-side pressure. For Bitcoin, $88,000 remains a critical support level, while $91,800 is immediate resistance,” Siddhant noted.

Ethereum trades below $3,000

Ethereum continued to experience heavy selling pressure, trading below the crucial $3,000 mark. As of the latest data, ETH was down 6.03 per cent at $2,976, with a 24-hour trading volume of $33.75 billion. The coin fluctuated between $2,921 and $3,171 in the past 24 hours.

 

Sehgal identified resistance for Ethereum at around $3,150–$3,250, with support placed at $2,880.

Altcoins mirror broader downturn

The altcoin market mirrored the broader downturn, with several coins facing steep losses. Monero (XMR) led the declines, shedding 19 per cent in market capitalization. Other major altcoins, including Hyperliquid (HYPE), Immutable (IMX), Morpho (MORPHO), Cosmos (ATOM), Quant (QNT), Chiliz (CHZ), Dash (DASH), Render (RENDER), Polkadot (DOT), TRON (TRX), Solana (SOL), and Aave (AAVE), saw declines ranging between 4 per cent and 9 per cent.

 

Conversely, a few tokens managed to post gains amidst the market turmoil. LayerZero (ZRO), Canton (CC), Story (IP), PAX Gold (PAXG), Tether Gold (XAUt), Tezos (XTZ), Bitcoin Cash (BCH), and a few others registered gains of up to 12 per cent, according to CoinMarketCap.