The cryptocurrency sector exhibited a retreat on Wednesday, mirroring declines across equity markets as investors took profits after a series of recent gains. Bitcoin, Ethereum, XRP, Solana, and Dogecoin all recorded losses by the evening trading session, with Bitcoin slipping slightly below $91,000 before moderating its decline overnight.
Bitcoin’s price dropped by 1.56% to $91,305.82, while Ethereum declined 2.97% to reach $3,170.13. XRP was hit the hardest among major tokens, falling 5.03% to $2.17, followed by Solana’s 2.55% decrease to $136.82 and Dogecoin’s smaller 1.02% drop to $0.1468.
Trading volume in Bitcoin decreased sharply by 22% over the past 24 hours, suggesting diminished spot market activity during the decline. Despite this, Bitcoin's dominance in the cryptocurrency market remained around 58%, with Ethereum stable near 12.2% market share.
Market-wide, these movements contributed to a total cryptocurrency capitalization contraction of 1.87%, now approximated at $3.13 trillion.
According to Coinglass data, approximately $285 million worth of cryptocurrency positions were liquidated within 24 hours, including $241 million of long liquidations. In contrast, Bitcoin's open interest increased by nearly 4%, an indicator often interpreted as traders establishing new short positions amid falling spot prices.
The Crypto Fear and Greed Index, a gauge of market sentiment, indicated prevailing fear among participants, reflecting caution amid the pullback post rally.
Not all digital assets approached the trading day negatively; small-cap coins with market capitalizations over $100 million recorded gains, including Brevis (up 29.08% to $0.4609), AI Companions (up 21.25% to $0.1441), and The White Whale (up 18.11% to $0.1061).
Stock markets experienced a simultaneous decline on Wednesday, with major indices retreating from recent peaks. The Dow Jones Industrial Average eased 466 points, a 0.94% loss ending at 48,996.08. The S&P 500 dropped 0.34%, settling at 6,920.93. Meanwhile, the Nasdaq Composite was a relative exception, achieving a modest 0.16% gain to 23,584.27.
The energy sector contributed notably to stock market weakening, as Chevron Corp. and Exxon Mobil Corp. closed down by 0.86% and 2.11%, respectively.
Downward pressure on oil prices accompanied this activity, with Brent crude slipping to $56.31 per barrel from $58 earlier in the week, influenced in part by statements from U.S. political figures regarding Venezuelan oil exports.
Industry analysts at cryptocurrency payment processor B2BinPay conveyed to institutional clients that despite the recent gains observed in digital assets, the overall market remains entrenched in a downtrend. Their commentary underscores that the recent October 2025 leverage reset has likely reset market parameters but that current conditions do not favor an extended bearish phase.
The analysts remarked that initiating a new bear market phase now seems unlikely, given that such phases typically commence near market highs rather than following corrective moves.
Renowned crypto trader Ali Martinez contributed to the discourse, explaining that Bitcoin will need to close decisively outside the $88,000 to $94,000 range on a daily basis to provide a credible signal regarding its medium-term trend direction.
These insights reflect a cautious outlook among market participants who recognize current weakness but do not foresee immediate catalysts driving prices substantially lower.