Why The Crypto Market is Crashing Today
The cryptocurrency market has hit a rough patch, with Bitcoin and other major currencies losing recent momentum. After several weeks of strong performance, the total market capitalization has fallen by about 3% and is currently around $3.54 trillion. The drop comes on the heels of President Donald Trump’s inauguration, which many believe will bring good news to the crypto world.
Disappointment at Trump’s inauguration
Ahead of the inauguration, there was excitement about potential cryptocurrency-friendly policies under Trump. However, in his speech, Trump didn’t mention cryptocurrencies Or blockchain technology.
The lack of focus on cryptocurrencies has frustrated investors, leading to speculation that the inauguration turned into a “sales press” event. Hype quickly turned to concern, undermining the optimism that had previously driven prices higher.
Bitcoin ETF outflows add to economic downturn
Bitcoin ETFs saw significant outflows, exacerbating market pressure. As of January 22, approx. Valued at US$95.62 million According to reports, Bitcoin ETF outflows mainly come from Grayscale and Bitwise funds, excluding BlackRock’s data.
These outflows are consistent with market weakness, further contributing to the overall decline
Liquidations add to market pressure
The market also saw significant liquidation, exacerbating the downward trend. In the past 24 hours, Position worth $243 million Positions were liquidated, with long traders suffering the largest losses of $192 million. The largest single liquidation occurred on the OKX exchange, worth $5.93 million.
Bitcoin and other cryptocurrencies fall
Bitcoin, the largest cryptocurrency, has struggled to sustain its gains. The stock fell 2.9% to $102,600 after briefly hitting an all-time high of over $109,000 earlier this week.
Other major cryptocurrencies such as Ethereum, XRP, and Solana It also fell by 3%-4%, The decline of meme coins such as DOGE, SHIB, TRUMP and PEPE was even more severe, reaching 5%-10%.
