The broader cryptocurrency market is facing a sharp downturn, with major digital assets such as BTC, ETH, and XRP posting significant intraday losses. These three big names have been showing an extended bearish sentiment in the cryptocurrency market, trading below key moving averages and support levels.
Bitcoin, the largest cryptocurrency by market capitalization, generally called “Digital Gold,” is trading below the $65K, its key support level. Ethereum, the second-largest cryptocurrency by market capitalization, is down by over 5% over the past 24 hours and trading below the $2,000 psychological level.
XRP, Ripple’s native cryptocurrency, is trading below the $1.35 immediate support level. According to the latest reports, a broader risk‑off sentiment has emerged, tied to an unfolding ‘AI scare trade’ that is exerting pressure on the cryptocurrency market.
Bitcoin is down by 4.66%, underperforming the broader cryptocurrency market. According to the current market data, BTC is trading at $63,195.02, displaying a massive intraday loss. The broader market decline and lack of bullish catalysts are some major factors that are driving BTC below its key levels.
The renewed tariff-related uncertainties are also pushing the digital assets below and significantly impacting the broader cryptocurrency market. Expert analyst $Trader observed that Bitcoin had confirmed a bearish continuation after breaking down from the bearish pennant that had been tracked over the past week, with the day’s follow-through candle validating that sellers remained firmly in control.
The analyst added that, from a technical standpoint, it was classic trend continuation behavior, where momentum paused, resolved lower, and accelerated in the direction of the dominant trend. He further observed that, psychologically, bulls were trapped and forced to sell rallies, while bears were pressing their advantage as the price remained below all key moving averages, reinforcing a clear downtrend.
Ethereum is currently valued at $1821.21, showing an extended bearish outlook with a 5% intraday loss. Ethereum’s market downturn is closely associated with Bitcoin’s 4.66% decline in a broad market sell-off. According to the latest market analysis, no clear coin‑specific bearish catalyst has been identified. Experts observed that the oversold technical structure and underperformance within the altcoin rotation are adding downward pressure.
XRP is trading at $1.33, and it is down by 5% over the past 24 hours. Despite a slight market surge, the latest market data shows that XRP has extended its losing streak to eight days, with the price consolidating between $1.30 and $1.38.
The XRP downtrend is primarily driven by the market-wide risk-off move, with the technical breakdown below key levels further intensifying the bearish sentiment. Despite the bearish trend, XRP’s network activity remains strong. Analyst CryptoSensei said that the XRP network activity remained strong, with around 2 million transactions per day and roughly 40,000 active addresses, which he described as real usage.
He added that while most chains chased narratives, the XRPL continued moving value through payments and settlements. He further said that this kind of consistency was what institutions looked for and stated that XRP was positioned for that wave.
AI Disruption Fears Trigger Liquidity Shift and Crypto Sell-Off
A viral report from Citrini Research recently sparked what analysts are calling an ‘AI disruption’ or ‘AI scare trade.’ The study highlights potential left‑tail risks, warning that artificial intelligence could make the economy increasingly unpredictable. According to the research, the global markets, including crypto, are heavily influenced by the Global Liquidity Cycle.
Warnings of AI‑driven unemployment and economic disruption in knowledge work have triggered sell‑offs in AI and tech stocks, with the pressure spilling over into crypto risk assets. This recalibration of liquidity is hitting cryptocurrencies on a lag, as investors retreat from high‑beta assets amid fears of an AI bubble burst.
The research stated that as AI capabilities had improved, companies had needed fewer workers, leading to increased white-collar layoffs. It added that displaced workers had spent less, and the resulting margin pressure had pushed firms to invest more in AI.
