Bitcoin Rejection Triggers $80 Billion Crypto Market Selloff
Crypto markets experienced a sharp selloff on Tuesday, shedding approximately $80 billion in value. The downturn was triggered by Bitcoin's failure to break resistance near $65,600, leading to a rapid fall of almost $3,000 and sending the asset to around $63,000 for the first time since July 17.
Bitcoin's rebound from Monday collapsed as it failed twice to breach the $65,600 level. The second rejection sent BTC plummeting, leaving traders questioning whether the $63,000 support could withstand further selling pressure.
The selloff spread across major cryptocurrencies, with Ether dropping below $1,900 and XRP losing the $1.10 threshold. Solana and HYPE also posted significant drops, with over 165,000 traders facing liquidations approaching $700 million.
The timing of the crash added to market unease, coming just one day before the U.S. Federal Reserve's interest rate decision. The uncertainty surrounding monetary policy weighed heavily on risk-sensitive assets, leaving traders facing a fragile technical setup and heightened volatility.