Bitcoin’s price action took a turn for the worse over the past day as the asset plunged below $88,000 for the first time since mid-November.

The altcoins have performed even worse over the same period, with massive double-digit price declines from ETH, XRP, DOGE, ADA, LINK, AVAX, and many others.

BTC to Multi-Month Low

It was just a few days ago, on Friday, when the primary cryptocurrency had not only recovered from the Tuesday dip to $93,500 but also managed to gain some traction and challenge the coveted $100,000 line. However, the hack against Bybit quickly stopped its ascent, and the landscape has only worsened since then.

Following a calm weekend, in which the asset spent around $96,500, BTC dropped to $94,000 on Monday despite Strategy’s latest multi-billion dollar purchase. That was just the beginning of a violent correction, though, as bitcoin slumped even harder on Tuesday morning to just under $88,000 (on Bitstamp).

This became its lowest price point since November 15 – or just 10 days after the US elections. As of now, BTC struggles to reclaim the $88,000 level after a rejection at $90,000 minutes ago.

Its market capitalization has plunged by $150 billion daily and is down to $1.750 trillion on CG. The silver lining is the growing dominance over the alts, as the metric has increased to 58.8%.

Alts Freefall

The growing BTC dominance in times of deep correction means only one thing – the alts have dumped hard. In fact, double-digit price losses are evident from most. Such examples come from Ethereum, which has tumbled below $2,400 after an 11% daily drop.

XRP, DOGE, ADA, SOL, LINK, XLM, AVAX, LTC, SUI, and many, many others have recorded price drops of more than 10% in the past day. BNB and TRX are among the few with single-digit declines.

The cumulative market capitalization of all crypto assets has shed more than $300 billion in a single day as the metric is now below $3 trillion on CG for the first time in over three months.

Over the past 90 days, bitcoin (BTC) has been in a state of consolidation, hovering between the $91,000 and $102,000 range. Analysts at the crypto exchange Bitfinex have revealed that the cryptocurrency is currently at a “critical juncture” after this prolonged trading pattern.

According to the market experts, Bitcoin’s next major move will likely be determined by macroeconomic trends – this scenario appears to be playing out already, as BTC has fallen below $87,000.

Bitcoin at a Critical Juncture

With the market in a contraction phase, institutional interest in Bitcoin and Ethereum has slowed, as seen in spot exchange-traded fund (ETF) flows from last week. ETF flows have fallen from 45,000 coins purchased per day to 1,000 in the past week. Bitcoin ETFs experienced outflows every day last week, with negative flows surpassing $360 million on Thursday.

Bitfinex says this reduction in institutional BTC demand indicates a weakening bullish momentum for the digital asset.

The stalling market momentum was offset on Friday after the leading crypto exchange and derivatives platform Bybit was hacked for more than $1.4 billion in ether (ETH). The Bybit incident and a sharp options expiry sell-off for the S&P 500 triggered a 4.7% decline in bitcoin’s price to $95,000 before the asset recovered over the weekend.

BTC Falls Below $88K

Although BTC moved within a 6.5% peak-to-trough range, the asset has now fallen below $90,000, suggesting that it has broken this range to the downside. At the time of writing, data from CoinMarketCap showed the cryptocurrency changing hands at $87,500 after a 9% decline in the last 24 hours.

Bitcoin’s decline below $90,000 comes amid a lack of the momentum required for a sustained breakout. This market dynamic has also affected almost all major crypto assets, leading to a period of contraction among them.

Evaluating the performance of major assets as of February 22, BTC had lost 6% of its gains from November-December 2024, ETH had plummeted 16.9%, while Solana and the meme coins index had declined 33.1% and 37.4%, respectively.

Meanwhile, Bitfinex said a similar stagnation witnessed in traditional finance markets, especially the S&P 500, has contributed significantly to the stalling market momentum.

“A notable example was the sharp decline of more than 2.1 percent in the stock market on February 21, following the options expiry. This reflects how the broader equity marketʼs suppression has affected risk assets in general, including cryptocurrencies,” the crypto exchange added.

TL;DR

• The SEC acknowledged Grayscale’s application to introduce a spot ADA ETF in America. 
• The asset manager also seeks to convert its XRP Trust into an ETF, with similar filings pushing the approval odds to 74% before the end of 2025.

The Chances Are Rising

Over the past few months, there has been a bunch of companies displaying their intentions to launch spot crypto exchange-traded funds (ETFs) in the United States. Among the most active entities in this field is the world’s largest digital asset manager – Grayscale. 

The organization officially filed for a Cardano (ADA) exchange-traded fund with the New York Stock Exchange on February 10. Several hours ago, the SEC acknowledged Grayscale’s application. The move marks the beginning of the regulatory review process, which usually lasts 240 days. 

The SEC’s acknowledgment has increased the chances of the product seeing the light of day before the end of 2025. According to Polymarket, the odds have risen from 52% on February 24 to 66% as of now. 

A potential green light will allow investors to gain exposure to ADA without purchasing it from exchanges or worrying about self-custody methods. This could have a positive effect on the price in the long term.

As of now, though, Cardano’s native token is not in the best shape. It trades at around $0.64 (per CoinGecko’s data), representing a 12% daily decline. Its drop aligns with the broader collapse of the cryptocurrency market, where Bitcoin (BTC) crashed below $90,000, while Ethereum (ETH) dipped under $2,400.

As CryptoPotato reported, the sector’s decline negatively affected some over-leveraged traders. The total value of liquidated positions in the last 24 hours surged past $1 billion.

Grayscale’s XRP-Related Efforts

The entity also recently sought regulatory approval to convert its existing XRP Trust into an exchange-traded fund. Earlier this month, the SEC acknowledged that application, triggering a substantial uptick in the price of the underlying asset. 

Other well-known companies willing to introduce an XRP ETF in America include 21Shares and Bitwise. The Commission has also acknowledged their filings.

According to numerous industry participants the launch of such an investment vehicle might be just around the corner, whereas Ripple’s CEO has asserted multiple times that this is “inevitable.” The chances of an approved XRP ETF in the US before the end of 2025 currently stand at 74% (per Polymarket).