The crypto market crash today is mainly driven by several factors including large-scale liquidations of over-leveraged traders, weak inflows into Bitcoin ETFs signaling cooling institutional demand, a strengthening U.S. dollar and bond yields pulling capital away from riskier assets, and broad global risk- off sentiment with geopolitical tensions and regulatory uncertainties. These factors combined are causing a cascade of selling across Bitcoin and altcoins, with mass liquidations accelerating price declines and leading to a broad market sell-off. This sell-off wiped out billions from the market capitalization in a short time, reflecting heightened volatility and fear among traders.
Specifically:
- Over $1 billion in liquidations from futures forced many traders out of positions.
- Spot Bitcoin ETFs saw weak inflows, indicating reduced institutional buying.
- The stronger U.S. dollar and rising bond yields have shifted investor preference toward safer assets.
- Geopolitical and regulatory risks globally have heightened market caution and risk aversion.
This combination of factors explains why crypto prices plunged today, creating a sharp downturn rather than a gradual correction.
