
Why is Crypto Down Today? Here’s What You Need to Know
The cryptocurrency market experienced a sharp decline today, with over $100 billion in market capitalization lost. This drop came despite record levels of global liquidity.
Bitcoin fell by 2.7% to around $115,458, breaking key support levels and signaling potential weakness ahead. The total crypto market cap dropped to approximately $3.72 trillion, possibly reaching as low as $3.61 trillion if the current trend continues.
Over $700 million in leveraged long positions were liquidated across the market, triggering a cascade of forced selling that spread throughout the ecosystem. This selloff comes after a 33% rally since late June, with many viewing this correction as healthy rather than a reversal in the longer term trend.
XRP led major cryptocurrency losses with a decline of 12%, dropping to around $3.06. The drop followed reports that Ripple co-founder Chris Larsen transferred 50 million XRP tokens to centralized exchanges, resulting in approximately $140 million worth being moved according to blockchain investigator ZachXBT.
Ethereum faced downward pressure, falling by 2-3% and trading near $3,600. This cryptocurrency is dealing with validator exit pressure as over $2.3 billion in ETH awaits unstaking from the network.
Despite this decline, analysts remain cautiously optimistic about longer-term prospects, viewing this weakness as a correction rather than a reversal of the overall trend.
In related news, Tether minted $2 billion USDT on Ethereum, fueling market rally speculation.
Source: coincentral.com