The crypto market dropped today mainly due to several key factors:
- Large-scale liquidations in the futures market caused forced closures of overleveraged positions, leading to cascading selling and price declines.
- Weak institutional demand with cooling Bitcoin ETF inflows and significant outflows from Ether-linked ETFs intensified selling pressure.
- Rising U.S. dollar strength and surging bond yields pulled capital away from riskier assets like cryptocurrencies.
- Growing fears of a potential U.S. government shutdown contributed to risk-off sentiment, increasing market uncertainty.
- Technical resistance levels and options expirations added to downward pressure and volatility.
Bitcoin dropped slightly below key support levels around $110,000, while Ethereum and other major altcoins like Dogecoin and Solana experienced sharper declines due to this broad market sell-off. Over $1.65 billion in leveraged crypto positions were liquidated recently, amplifying the downward momentum. This combination of macroeconomic uncertainty, institutional caution, and liquidation events is driving today's crypto price drop.
