Why is Crypto Down Today? Here’s What You Need to Know
TLDR
- Crypto market cap dropped $105-117 billion to $3.72 trillion as Bitcoin fell 2.7% to $115,458 and broke key support levels
- Over $700 million in leveraged long positions were liquidated, with XRP losing $89 million in single-day liquidations alone
- Despite record US M2 money supply reaching $22.02 trillion, liquidity remains parked in money markets rather than flowing into crypto
- Ethereum faces validator exit pressure with $2.3 billion worth of ETH waiting to be unstaked, while XRP dropped 12% after Ripple co-founder transferred 50 million tokens
- Analysts view the decline as a healthy correction following a 33% rally since late June, with leveraged altcoin positions driving forced selling
The cryptocurrency market…
