Bitcoin Plunges to $83,500, ETH, XRP Lose Over 3%: What Is Going On?

Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) on Wednesday pulled back 2.5% and 4.5%, respectively, while XRP (CRYPTO: XRP) is down 3.5% to $1.44.

The slide tests whether the market’s recent comeback can withstand profit-taking as traders watch key support levels.

Prominent analyst CoinTraderNik said Bitcoin is nearing critical point that could determine whether the current decline remains consolidation or develops into a deeper correction.

Futures traders are building shorts, but spot-market signals suggest bears have yet to force a breakdown. This raises the possibility of a short squeeze.

The key level is $82,800 and a break below would favor bears, while holding the range into the weekly close could force shorts to unwind.

Why Is the BTC Trend Stuck?

CryptoQuant data shows that Bitcoin is trading above the trader on-chain realized price, which estimates the average cost basis of active market participants.

That level currently sits near $68,900, while the model’s upper band is around $96,500.

Bitcoin’s move toward the upper band also leaves active traders sitting on larger unrealized profits, increasing incentives to take gains.

A pullback toward the $68,900 realized price followed by a rebound would indicate buyers are absorbing that selling pressure.

Sustained trading below the level and a failed reclaim would instead weaken the recovery structure.

What Will Drive Crypto’s Adoption

Despite range-bound prices, Injective CEO Mirza Uddin says improving regulatory clarity, faster tokenization and broader ETF access are strengthening the foundation for crypto adoption.

He added that crypto’s recovery is being supported by regulatory developments even after Congress failed to pass the CLARITY Act.

Tokenization is another major catalyst as significant worth of stocks, bonds, real estate and other assets are already moving on chain.

In a Schwab Network interview on Tuesday, Uddin highlighted ETFs as a major bridge between crypto and traditional investors.

He said ETH’s recent relative strength has partly reflected growing demand through Ethereum ETFs, while additional crypto ETF launches could extend that accessibility to more assets.

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