Why Crypto Market is Down: Is Crypto Crash Causing Panic Trading?

Why Crypto Market is Down Today: Crypto market Crash Shakes Investors

Crypto Market Bleeds: Is Massive Drop Triggering  Panic Trading?

The crypto market is experiencing a significant downturn, with the global market cap dropping to $3.13T, reflecting a sharp 7.39% decrease in the last 24 hours. 

Despite the decline, trading activity has surged, with total crypto market volume rising by 180.61% to $315.75B. DeFi activity remains subdued, contributing $20.35B, or just 6.44% of the total market volume. Meanwhile, stablecoins dominate trading, accounting for $291.44B, or 92.30% of the 24-hour volume. 

The increased trading volume suggests heightened market uncertainty as investors react to the downturn, possibly moving into stable assets to hedge against further losses.

Crypto Market Down : Is Bitcoin the Key Factor?

At press time, Bitcoin was trading for about $95,492.34, which is 4.01% down from 24 hours ago. Its market cap was $1.89 trillion and it was down 12.7% from its historical peak of $109,114.88. The market has been facing volatility and corrections. 

Crypto Market Crash Triggers $2.26 Billion in Liquidations

According to coinglass crypto liquidation map, the past 24 hours have seen the cryptocurrency market experience a major downgrade which triggered shocking liquidations across the market. A total number of 742,683 traders were liquidated with total losses adding up to $2.26 billion. Most of these liquidations were long positions, with a loss to the tune of $1.89 billion, while shorts were liquidated with losses pegged at $377.12 million. 

The largest single liquidation order occurred on Binance, where an ETHBTC position worth $25.64 million was liquidated. The extreme furor of liquidations attests to market volatility, which has led leveraged traders to incur heavy losses as the price plunged.

Such large-scale liquidations often cause further selling pressure, adding to the downward pressure on already falling prices. 

Market Crash: Robert Kiyosaki Says - A Golden Opportunity for Investors

Robert Kiyosaki says that the stock, bond, real estate, gold, silver, and Bitcoin markets are crashing and that this represents a huge opportunity for investors to collect valuable assets. He predicted a hard downturn with massive job layoffs, but he believes that such a downturn is the best chance for building wealth and making astute investments. But is the time for crypto buy or sell now? 

Crypto Market Drops: Fear Index Hits 44

The global crypto market cap stands at $3.13 trillion, marking a 7.39% decline in the past 24 hours. This downturn reflects a shift in market sentiment, as indicated by the Crypto Fear and Greed Index, which currently sits at 44 (Fear). 

Just yesterday, the index was at 60 (Greed), This image shows the Fear & Greed Index for cryptocurrency market sentiment. The current value is 44 (Fear), indicating a decline from Greed (60 yesterday, 71 last week, and 73 last month). It reflects investor emotions, where higher values suggest optimism (greed) and lower values indicate fear-driven market behavior.

Stronger U.S. Dollar Pressures Bitcoin

Bitcoin faces downward pressure as the U.S. Dollar Index (DXY) rises to 108.50 and 10-year Treasury yields exceed 4.54%. Historically, Bitcoin moves opposite to the dollar and Treasury yields, meaning a stronger dollar reduces BTC demand as investors shift towards safer assets, leading to lower prices.

Trump Trade War Triggers Market Panic

President Donald Trump imposed new tariffs under the IEEPA—25% on Mexico and Canada, 10% on China—citing national security concerns. This sparked fears of inflation and economic instability, causing stock and crypto markets to plunge. The move aimed to curb illegal immigration and drug trafficking but led to widespread financial panic.

Market Turmoil: Risk or Opportunity?

The steep decline of the cryptocurrency market has incited fear and massive liquidations, with trading activity remaining extremely active. There is uncertainty hanging, but some investors see this drop to be an opportunity for them to buy at discounted prices. Will this down trend deepen, or will forces of some kind spark a recovery? Time will tell, as the ongoing volatility shapes the future course of the market.