Bitcoin dropped today primarily due to a significant liquidation event in the cryptocurrency market that wiped out over $630 million in leveraged positions, mostly from long traders. This was triggered by broader macroeconomic pressures including uncertainty from the U.S. Federal Reserve, declining liquidity, routine profit-taking, and a sudden U.S.–China tariff shock announced by President Trump, which sent global markets including crypto into a sharp risk-off sell-off. The market cap also lost nearly $200 billion in value, reflecting profit-taking amid ongoing geopolitical and economic concerns, plus regulatory fears and decreased trading volume contributed to the decline. Despite the drop, Bitcoin remains above $110,000 and the market shows signs of resilience, with some assets like BNB seeing growth and total value locked in DeFi remaining robust.
