Crypto Hangover: Uniswap, XRP and NEAR Slide After the Rally

Set Trending Topics as a preferred source on Google.

Anyone who bet on the crypto rally with leverage is now getting the bill. After a week of soaring prices, the crypto market has turned noticeably lower: Bitcoin has lost around 3 percent in 24 hours and is trading at roughly €72,950 (about $83,160), while many altcoins are down two to four times as much. Uniswap has taken the hardest hit with a daily loss of more than 12 percent, followed by Zcash, XRP, NEAR Protocol and Stellar, each shedding more than 8 percent.

The weekly figures put the picture into perspective, though. Almost all major crypto assets are still clearly up over seven days, with NEAR Protocol (+49 percent) and Bitcoin Cash (+45 percent) posting massive gains. The current losses are therefore mainly a correction after a steep climb that had pushed Bitcoin back above $87,000 for the first time since January.

The Rally of the Past Few Days

Just a few days ago, the mood was celebratory. Bitcoin first climbed to $85,000, driven by an exemption from the U.S. Securities and Exchange Commission that allows tokenized U.S. stocks to trade on blockchains for five years. Networks such as Ethereum, Solana and BNB Chain, which could serve as infrastructure for these tokenized shares, benefited most. On top of that came heavy inflows into spot Bitcoin ETFs: According to The Crypto Times, more than $2 billion flowed into products such as BlackRock’s IBIT, Fidelity’s FBTC and ARK’s ARKB within three trading days. Bitcoin then approached $87,000, and some market watchers were already calling a return of the bull market.

A significant part of the rise came from the derivatives market, however. As Bitcoin broke through the $84,000 to $85,000 range, many traders who had bet on falling prices were forced to close their positions. This so-called short squeeze pushed the price even higher. Open interest in crypto perpetual futures rose to around $160 billion, approaching the levels of October 2025, when the market crashed hard after a record run.

Cause 1: Too Much Leverage in the Market

That very leverage is now hurting the market, this time in the other direction. After Bitcoin failed at the $87,000 resistance level at the Wall Street open on Wednesday, the price slipped below $84,000. According to Cointelegraph, around $280 million in long positions were liquidated within four hours, $237 million of them in a single hour. Every forced liquidation creates additional selling pressure, which in turn triggers further liquidations.

The effect is most visible among the altcoins that had previously risen the most. For rally star NEAR Protocol, open interest more than doubled to $1.29 billion, according to Coin Gabbar, and futures volume at times ran four times higher than spot trading. Experience shows that moves driven by derivatives tend to reverse quickly once momentum fades.

Cause 2: Profit-Taking at the ETF Threshold

Classic profit-taking is adding to the pressure. Many short-term investors have cashed in after a gain of around 35 percent since mid-August. One level stands out: The average cost basis of all U.S. spot Bitcoin ETFs is around $86,000. Many ETF investors who spent a long time in the red appear to be using the return to profit as a chance to exit. According to CryptoQuant, spot demand for Bitcoin remains negative on a 30-day basis, even though the trend is slowly turning.

Cause 3: A Strong Dollar and Rate Worries

The macroeconomic environment is also acting as a brake. The U.S. Federal Reserve raised interest rates last week for the first time since 2023, by 25 basis points to a range of 3.75 to 4.00 percent. The move was largely priced in, but markets now expect another hike in October. According to CoinGape, around 65 percent of traders on prediction markets are betting on a further increase. At the same time, the U.S. Dollar Index has climbed to an eight-week high, and the euro has fallen to around $1.14. A strong dollar and high yields on U.S. Treasuries tend to make risk assets such as cryptocurrencies less attractive.

The Largest Crypto Assets at a Glance

The following table shows the largest crypto assets by market capitalization (excluding the stablecoins Tether and USDC) according to CoinMarketCap. Prices were converted at the current rate of $1.14 per euro.

What Could Come Next

The party is probably not over yet. ETF inflows have held up so far: According to CoinGape, U.S. Bitcoin ETFs recently recorded five consecutive days of inflows. Analyst Rekt Capital sees the level of around $82,000 (roughly €72,000) as key support. If Bitcoin holds that level, the uptrend remains intact. If the price falls below it, the analyst warns of a return to the $60,000 to $80,000 range where Bitcoin has spent much of the year. On the upside, the zone around $90,000 is seen as the next major hurdle, where many investors are likely to take profits again.

For altcoin investors, the situation remains especially volatile. Coins such as NEAR, Bitcoin Cash and Uniswap have posted weekly gains of 30 to 50 percent within a few days, which leaves plenty of room to the downside once the leverage is flushed out of the market.