Bitcoin Dips Below $116K as Global Crypto Market Capitalisation Falls to $3.77 Trillion

Bitcoin (BTCUSD) slipped to $115,000 early on Friday amid sustained selling pressure, reflecting weakening investor sentiment toward the world’s largest cryptocurrency. The digital asset has dropped more than 3% over the past seven days, with the latest wave of sell-offs largely attributed to retail investors securing early profits.

BTCUSD had recently reached an all-time high of $123,000, a rally mirrored by other major cryptocurrencies, including Ethereum (ETHUSD), Ripple (XRPUSD), and Solana (SOLUSD). Since then, Bitcoin has traded within a narrow band between $117,000 and $120,000, following its pullback from record highs.

Despite the downturn, Ethereum posted a modest gain on Friday, rising 0.08% to $3,633. Investors appear to be repositioning, with ETHUSD having previously surpassed $4,000 amid renewed optimism during the ongoing altcoin season. Spot Ether exchange-traded funds (ETFs) have seen significant interest, recording a net inflow of nearly $2.4 billion over the past six trading days, substantially outpacing the $827 million inflow into spot Bitcoin ETFs during the same period, according to Farside Investors.

Ripple (XRP) recently surged to a new peak of $3.65, surpassing its 2018 high. However, prices have since retreated to around $3.08, marking a 12% decline over the past week. Analyst Dom noted that this pullback has wiped out approximately $1.3 billion in open interest, or about 30% of the total, interpreting the move as a standard leverage reset following a strong price rally.

While price action across the crypto market has remained volatile over the past 24 hours, hopes for a sustained rally have faded. The global cryptocurrency market capitalisation has dropped by more than 1% today, currently standing at $3.77 trillion.

Meanwhile, 24-hour trading volume has climbed by 9.15%, signalling heightened market turbulence rather than genuine growth. Bitcoin’s dip below $116,000, coupled with widespread liquidations in altcoins, points to a market correction driven by over-leveraged positions, profit-taking, and a shift away from risk-on assets.