Why Is The Crypto Market Crashing Today?

Cryptocurrency prices have tumbled in jarring fashion over the last 24 hours, with BTC, ETH, SOL, and ADA recording steep losses. As traders try to make sense of the crypto market crash, the immediate cause is heightened US-Iran tensions and the grim prospects of an Iranian retaliation on US soil.

Crypto Market Sheds $1.1 Billion In Liquidations Amid Steep Crash

According to CoinMarketCap data, the global cryptocurrency market capitalization has lost nearly 5% over the last day. The 5% decline in market capitalization stems from a steep crypto market crash, triggering $1.1 billion in liquidations.

Bitcoin, the largest cryptocurrency, shed 4% over the last day, falling below $100K for the first time in over a month. At press time, Bitcoin is trading at $99K, but despite the jarring decline, Michael Saylor has signaled yet another Strategy Bitcoin purchase.

While Bitcoin picks its way back up, the rest of the crypto market is in a sea of red. Ethereum, the largest altcoin, is down 9.37% in under 24 hours, holding well-above the $2,100 mark. XRP’s institutional adoption spree was unable to stop the asset from losing nearly 8% within hours, with Solana price shedding 7.34%.

Dogecoin and Cardano have slumped by 7% in the last day, while Pi and Shiba Inu are recording similar losses over the last day. At the moment, the global cryptocurrency market capitalization sits at $3.05 trillion, while trading volumes are recording lukewarm numbers.

Why Are Cryptocurrency Prices Falling Today?

There are several reasons in play for the crypto market price decline today, with the US-Iran conflict topping the list. Crypto prices crashed after a wave of US airstrikes hit Iran’s nuclear installations, after holding steady during last week’s skirmishes with Israel.

Hours after the strikes, the first cracks began to show as the Bitcoin price tumbled toward the $100K psychological level. However, fears of Iranian retaliation on US soil have imposed downward pressure on prices, with Bitcoin falling below $101K.

The Iranian parliament has voted to close the Strait of Hormuz, a key shipping route processing 20% of the global oil supply. The closure of the strategic shipping route has adversely affecting cryptocurrency prices as economists gauge its impact on financial markets.

Apart from the US-Iran tensions, the US Fed decision to keep interest rates steady has contributed to today’s crypto market crash. Last week, Fed Chair Jerome Powell blamed Trump’s tariffs as the primary reason for the decision not to cut interest rates.

Furthermore, forced selling in the futures markets is contributing to the falling cryptocurrency prices. Market data reveals that over $1.1 billion has been liquidated over the last day. On the technical side of things, a low-volume weekend and range-bound setup set the stage for the steep price drops triggered by the US-Iran tensions.