Crypto crash today: Crypto markets took a sharp dive today, leaving traders rattled and asking the big question, “Why is crypto crashing?”
Bitcoin dropped below $113,000 and is now trading at $112,660, dragging the total market cap down to $3.9 trillion, as per a report. The selloff has hit traders hard. According to Coinglass, more than 402,000 traders were liquidated in the last 24 hours, erasing $1.7 billion in positions. Longs took the biggest hit, losing $1.62 billion, while shorts were down just $85.8 million, as per the report.
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Crypto analyst Ted Pillows has pointed out that Bitcoin faces more than $2 billion in long liquidations between the $106,000 and $108,000 range and has added that a sweep of this level appears highly likely in the coming weeks before any major upward move, as quoted by a Coinspeaker report.
While Crypto analyst Captain Faibik has warned that Bitcoin may be preparing for another bearish wave and said that on the daily chart, a rising wedge has already broken down, and a bearish flag pattern is now forming, as quoted in the report. He also expects another bearish leg that could push BTC down toward the $100,000 level, as quoted by Coinspeaker.
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Ethereum wasn’t spared either. The second-largest cryptocurrency saw $483 million in liquidations, while Bitcoin traders lost $276 million, as reported by 99bitcoins.
Adding to the pressure are concerns over a wave of upcoming token unlocks. More than $517 million worth of tokens are set to be released into circulation over the next seven days, fueling fears of more selling, as per a 99bitcoins report.
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Still, some signs of resilience remain as US Bitcoin spot ETFs saw $163 million in inflows, a reminder that institutional interest has not vanished, even on a red day like this, as per the report.
Bitcoin is now sitting on a critical level. If $112,000 doesn’t hold, traders are eyeing $108,000 or even $100,000 as possible next stops, as per the 99bitcoins report. A push above $117,000, however, could open the door for a recovery toward $123,000. Ethereum, meanwhile, is being closely watched to see if it can stay above $4,000, according to the 99bitcoins report.
Despite the volatility, some investors are already asking what the best crypto to buy during this dip is. Historically, sharp drops like this one have sometimes marked good accumulation zones, but near-term uncertainty is far from over, as per the report.
Could Bitcoin fall further?
Analysts warn it might drop to $108,000 or even $100,000 before recovering, as per the Coinspeaker report.
What’s the total crypto market cap now?
The market cap has dropped to around $3.9 trillion.
