Crypto Market Falls Below $3T as Yen Shock Triggers Heavy Sell-Off

The crypto market dips below the $3 trillion mark on Monday as the Japanese yen’s rise causes fears of ‘yen carry trade unwinding.’ Gold and silver rise while major crypto assets continue to dip in the market.

Liquidations were accelerated in the market within the past 24 hours. According to Coinglass data, more than $745 million in liquidations were recorded in the market. Long positions accounted for more than 85% of the liquidated positions.

Several large-cap coins have also been identified as being undervalued according to on-chain metrics. According to Santiment data, Ethereum, XRP, Chainlink, and Cardano have a range of 30-day MVRV values of -5% and -10%. The negative values indicate traders are holding coins as they are losing value.

Positive MVRV Often Triggers Selling Pressure

In general, negative MVRV conditions occur in the course of the accumulation phase. These conditions also suggest that the pressure of profit-taking in the short term is lower. Analysts describe the conditions as a form of reset in the market.

Positive MVRV values tend to represent situations wherein the traders are holding gains. It can increase the probability of selling, especially within volatile markets. The market is more cautious for the current negative values.

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Bitcoin indicators also show weakness. 10x Research reports that the BTC daily stochastic was trading in the 15–16% range. These figures indicate that the asset is trading within a significantly oversold territory.

Crypto Divergence Widens as Gold Breaks $5,000

The price of Bitcoin is trending lower, as evidenced by its price movement following a peak above $125,000 in mid-2025. The price movement is evident from its price chart. The price is trending lower, with no signs of recovery.

Another factor that analysts were looking at was the increasing imbalance between gold and Bitcoin. Analyst CryptosRus highlighted that there was a steep decline in the Bitcoin-to-gold ratio. It is considered a rare occurrence in history.

Source: X

Yesterday, gold prices rose above $5,000 this morning in the face of macro uncertainty. The jump has increased the gap in price divergence for these two assets. It has also revived the debate on long-term flows.

Analysts believe the ratio will eventually move toward equilibrium. However, they noted that this shift may require capital rotating from gold into Bitcoin, a process that has not yet begun under current market conditions.

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