Why Is the Crypto Market Down Today?

The crypto market is under heavy pressure today, with prices across top coins turning sharply lower. The total crypto market cap has dropped to around $2.82 trillion, down more than 5% in 24 hours, while overall sentiment has slid deeper into “Fear”.

Cryptocurrencies, including Bitcoin, Ethereum, Solana, ADA, and XRP, have all fallen between 5% and 7%, with losses spreading quickly across altcoins. At the time of writing, Bitcoin is trading below $83k and Ethereum below $2.8k.

So what’s driving the sell-off?

Over $1.7 Billion in Liquidations Hit Crypto

One of the biggest drivers of the drop was a wave of forced liquidations, not panic selling. More than $1.7 billion in crypto positions were liquidated in the past 24 hours, wiping out over 276,000 traders.

This was largely a long-side flush, meaning traders who were betting on higher prices using leverage were forced out when prices moved against them.

• Bitcoin saw about $781 million in liquidations
• Ethereum followed with roughly $421 million

When markets are heavily leveraged, even small price drops can trigger automatic sell orders, creating a chain reaction that pushes prices down quickly.

A Global Market Shock, Not a Crypto-Only Event

Today’s sell-off comes alongside extreme volatility in traditional markets. In just a few hours, global assets experienced a massive swing in value:

• Gold briefly erased nearly $3 trillion in market value before recovering part of the loss
• Silver lost around $750 billion, then staged a partial rebound
• U.S. equities saw over $1 trillion wiped out intraday, followed by a sharp recovery

Heavy Selling From Large Wallets Added Pressure

On-chain data also showed large sell flows from major exchanges and wallets, which added further stress to the market. Reports pointed to large Bitcoin movements from platforms such as Binance, Coinbase, OKX, and Kraken, along with activity linked to large private holders.

Congress and Regulation Added to Market Uncertainty

All of this selling happened as political uncertainty increased in Washington.

A long-awaited U.S. crypto market structure bill narrowly passed out of the Senate Agriculture Committee by a 12–11 vote and is now headed to the full Senate. The bill would give the Commodity Futures Trading Commission primary authority to regulate Bitcoin as a commodity rather than a security.

While the bill advancing is a step forward, the narrow, partisan vote unsettled markets. All Democrats voted against the bill after proposed amendments failed, including provisions related to ethics, self-custody protections, and safeguards for developers.

Gold vs Bitcoin: Peter Schiff Weighs In

During the sell-off, long-time gold advocate and Bitcoin critic Peter Schiff weighed in, comparing Bitcoin’s performance to precious metals.

Schiff said Bitcoin is now worth just 15.5 ounces of gold, down 57% from its 2021 peak and only about 10% above its 2017 high when measured against gold. He argued that despite years of hype, Wall Street backing, and political support, including from the Trump administration, many investors would have been better off holding gold or silver instead of Bitcoin.

What’s Next for Bitcoin?

From a technical perspective, analysts warn that Bitcoin is approaching a critical zone.

Bitcoin was recently rejected again at the $94,000–$97,000 supply area, a level that has capped multiple rallies. Since then, the price has slipped back below the $84,000 support level, which had held since November.

While a clean daily close below $84,000 has not yet been fully confirmed, analysts say such a move would open the door to a deeper decline toward the $74,000–$76,000 range, a long-term support zone.

A weekly close below $84,000 would be seen as strong confirmation that the market is entering a deeper corrective phase. On the other hand, if Bitcoin can quickly reclaim and hold above $84,000, the current move could turn into a false breakdown, allowing price to rotate back toward the $94,000–$97,000 resistance area.

Tom Lee Is Bullish?

Amid the market volatility, Tom Lee brought to attention a point many investors often overlook.

Lee said that a rally in gold and silver is not bearish for crypto. Historically, precious metals tend to move first, while crypto follows later. According to him, metals are rising because of a weaker US dollar, more dovish central banks, and growing global uncertainty.

He explained that Bitcoin usually does not move while liquidity is still repairing. Instead, it rallies after markets finish deleveraging and positions reset.

Related: Why Gold’s Boom May Not Signal the End for Bitcoin