The cryptocurrency market experienced a significant downturn this week, with its total capitalization falling by an estimated $240 billion. Major digital assets like Bitcoin, Ethereum, and XRP recorded substantial price declines, reflecting a broad bearish sentiment across the sector.
Key Takeaways
- Total crypto market capitalization dropped from $4.12 trillion to $3.88 trillion.
- Bitcoin fell 5.5%, while Ethereum saw an 11% decline, dipping below $4,000.
- XRP decreased by nearly 7%, allowing stablecoin USDT to rise in market rank.
- Billions in leveraged positions were liquidated, marking a turbulent week for traders.
Bitcoin Leads Market Correction
Bitcoin (BTC), the largest cryptocurrency by market capitalization, was at the forefront of this week's losses. Its price decreased from approximately $115,700 on September 20 to about $109,500 by September 27. This 5.5% weekly drop made BTC one of the poorer performers during this period.
The overall crypto economy saw its total market capitalization shrink from $4.12 trillion to $3.88 trillion. This change highlights a challenging environment for digital asset investors.
Market Snapshot
- Total Market Cap Decline: $240 billion
- Bitcoin Weekly Loss: 5.5%
- Ethereum Weekly Loss: 11%
- XRP Weekly Loss: Nearly 7%
Ethereum and XRP Face Significant Pressure
Ethereum (ETH) also experienced a notable decline. Trading above $4,400 at the start of the week, ETH finished 11% lower at $3,992. This marks its first time below the $4,000 threshold since August 8. The bearish sentiment affected ETH despite reports of institutional acquisitions, such as those by Bitmine Immersion, which are typically considered bullish indicators.
On September 25, Ethereum reached an intraday low of $3,846, its weakest point in several weeks. This occurred despite continued institutional interest in the asset.
"The market's bearish momentum proved too strong, dragging ETH to an intraday low of $3,846 on Sept. 25, its weakest level in weeks despite institutional interest."
XRP's Struggle and USDT's Rise
XRP, which has been working to regain momentum after hitting an all-time high of $3.66 in July, concluded the week nearly 7% lower, trading just under $2.79. While some analysts have suggested a potential rally for XRP, recent price movements indicate a more cautious outlook.
The decline in XRP's value allowed USDT, a stablecoin, to strengthen its position. USDT is now the third-largest digital asset by market capitalization, demonstrating the shift towards less volatile assets during turbulent periods.
Understanding Stablecoins
Stablecoins are cryptocurrencies designed to minimize price volatility. They are typically pegged to a stable asset or a basket of assets, such as the U.S. dollar, to maintain a consistent value. USDT (Tether) is one of the most widely used stablecoins.
Altcoin Performance and Trader Liquidations
Beyond the major cryptocurrencies, several altcoins also recorded substantial losses. BNB, which had reached an all-time high of $1,079 on September 21, fell 5.3% to $968 by week's end. Other notable altcoin declines included SOL (–16%), DOGE (–14%), ADA (–12.8%), and HYPE (–18.1%).
However, a few altcoins defied the general market trend. ASTER and MYX posted significant gains of 59.4% and 32.4%, respectively, showcasing isolated positive performances amidst the broader downturn.
Impact on Leveraged Traders
The week was particularly difficult for leveraged traders. Billions of dollars were wiped out as positions were liquidated. According to Bitcoin.com News, approximately $1.7 billion in long and short positions were liquidated on September 22 alone. This event was the largest single-day liquidation of 2025.
Just three days later, another $1 billion in contracts were erased. Data from Coinglass indicates that over $6 billion in leveraged positions were liquidated throughout the week, with long contracts accounting for the majority of these losses. This highlights the high-risk nature of leveraged trading in volatile markets.
- Largest Single-Day Liquidation: $1.7 billion (September 22, 2025)
- Total Weekly Liquidations: Over $6 billion
- Majority of Losses: Long contracts
