Why is Crypto Down Today? Here’s What Happened
TLDR
- Crypto market lost $166-900 billion in 24 hours with Bitcoin falling below $110,000 and Ethereum dropping 5-8%
- Massive liquidations totaled $818-940 million, mostly from overleveraged long positions in Bitcoin and Ethereum
- Whale sell-offs from dormant wallets and thin weekend liquidity accelerated the price decline
- Risk-off sentiment drove investors to safer assets despite positive signals from Fed Chair Powell
- Bitcoin volatility jumped from 15% to 38% while Ethereum spiked from 41% to 70%
The cryptocurrency market experienced a sharp sell-off on August 26, 2025, with Bitcoin dropping below the critical $110,000 support level for the first time in over a month. The decline wiped between $166 billion and $900 billion…
