Cryptocurrency prices experienced a significant decline as liquidity concerns gripped the market. Major cryptocurrencies like Bitcoin, Ethereum, XRP, and ADA saw sharp drops, exacerbated by whale selling and institutional outflows. The situation was further pressured by reduced spot ETF volumes. Despite the downturn, Tom Lee of Fundstrat expressed cautious optimism by purchasing Ethereum, suggesting potential confidence in a market recovery. Analysts highlight the possibility of XRP ETF approvals and improved liquidity conditions as potential catalysts for a rebound in the crypto market.