Crypto Market Shake-Up: What a Bitcoin Drop Could Mean for Ethereum and XRP

Bitcoin's recent dip to $103, 000 has sparked concerns about a deeper correction. If Bitcoin falls further to $90, 000, it could spell trouble for Ethereum and XRP. Bitcoin's recent performance has been a bit shaky. It closed below some important moving averages, which means the sellers are in control right now. If Bitcoin keeps falling and hits $90, 000, it could cause a wave of forced selling. This would drain liquidity from the entire crypto market. When Bitcoin sneezes, the rest of the market catches a cold. During the last big sell-off in October, the correlation between Bitcoin and Ethereum rose from 0. 69 to 0. 73. The correlation between Bitcoin and XRP also increased from 0. 75 to 0. 77. In other words, when Bitcoin drops, it tends to pull the rest of the market down with it. Ethereum has been struggling lately. It broke below an important trendline and is now trading below several key moving averages. It's currently sitting in a demand zone between $3, 600 and $3, 280. If Bitcoin drops to $90, 000, Ethereum's support levels could give way, potentially sending it down to $3, 000 or even lower. XRP is in an even worse position. It's trading below all of its major moving averages, which are all sloping downward. It's also been rejected at a descending trendline. If Bitcoin falls to $90, 000, XRP could drop to $2. 20 or even lower. During market downturns, liquidity and sentiment drive the market. When Bitcoin falls sharply, leveraged traders get squeezed, and liquidity dries up. At the same time, investor sentiment turns sour, and even strong fundamentals can't protect individual tokens. In other words, when Bitcoin falls, the entire market tends to follow.