The crypto market is crashing today as fear spreads quickly among investors. After, the global crypto market cap dropped to $2.23 trillion, falling more than 4% in just 24 hours.
Bitcoin is leading the crash as the Fear and Greed Index has dropped to 14, showing extreme fear.
So, here are the top 4 reasons why crypto market is crashing today.
Bitdeer’s Bitcoin Sale Led Crypto Market Crash
One major reason behind today’s crypto market crash is the sudden decision by Bitcoin mining company Bitdeer to sell its entire Bitcoin holdings. The company sold 943 Bitcoin from its reserves along with newly mined coins. After this sale, Bitdeer now holds zero Bitcoin.
When a large mining company sells all its Bitcoin, it sends a negative signal to the market.
At the same time, Ethereum co-founder Vitalik Buterin continues to sell part of his Ethereum holdings. He recently withdrew 3,500 ETH worth nearly $7 million and sold part of it.
Over the past few weeks, he has sold more than 7,000 ETH worth around $15.5 million.
Trump 15% Tariff Creates Global Panic
Another reason behind today’s crypto market crash is rising fear over new U.S. trade tariffs. On 21st Feb, Donald Trump announced plans to increase global tariffs from 10% to 15%, which increased selling across risk assets like crypto.
This decision came after the Supreme Court of the United States ruled 6–3 that Trump had overstepped his authority when he introduced broad global tariffs last year.
In response, Trump criticized the court’s decision and said his administration decided to raise tariffs after reviewing what he called a “ridiculous and anti-American” ruling.
$466 Million Liquidations Make the Crash Worse
Heavy long liquidations played a major role in today’s crypto market crash. In the last 24 hours, more than 136,000 traders lost their positions, with total liquidations reaching over $466 million.
Selling pressure increased after Bitcoin fell below the key $66,000 support level. This triggered panic and pushed long liquidations sharply higher to $433.65 million.
Altcoins See Bigger Losses
The world’s largest cryptocurrency fell nearly 5% and slipped to around $64,375. Once Bitcoin started falling, the rest of the market followed.
Altcoins suffered heavier losses than Bitcoin. Ethereum fell 5.5% and dropped below $1,870, while Solana declined to around $77. XRP also dropped, falling to $1.34.
Other major altcoins like TRON, Chainlink, Cardano, and Dogecoin recorded bigger losses, falling between 6% and 10%, showing strong selling pressure across the altcoin market.
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