Sharp Market Pullback Hits BTC, ETH & L2s

[umair]

The market just went through another rough wave, and it’s starting to feel like sentiment is shifting fast. Bitcoin slipping below the 90k mark was already a warning sign, but the broader reaction across the market shows this correction has some real weight behind it.

BTC dropping several percent in a short window usually sets the tone, and that’s exactly what happened. Once it lost that key level, the sell-pressure extended into the majors. ETH ending up under 3k only added fuel to the bearish mood. When both large caps move down together, it tends to shake confidence across the board.

But the real damage this time seems to be in the layer-2 sector. These tokens are known for big swings, but seeing so many of them fall sharply highlights just how sensitive the current environment is. It feels like traders moved abruptly into a risk-off approach, pulling out of higher-volatility assets first.

The question now is whether this is just a healthy correction or a sign of a deeper downturn. On one hand, markets don’t go up in straight lines, and corrections are normal after strong rallies. On the other hand, repeated failures to recover important levels can shift momentum quickly and trigger more cautious behavior.

Right now, it looks like many investors are simply waiting to see if Bitcoin can reclaim stability. If it does, confidence could bounce back. If not, we might see more red across altcoins, especially the smaller ones that depend heavily on positive sentiment.

How’s everyone reading this? Is this a shakeout before the next move up, or are you expecting more downside from here?