Top 5 Reasons Behind the Dump:
1. Market-Wide Panic
Risk-off sentiment hit all markets today. Global uncertainty, weak economic data, and fears of tightening monetary policy caused investors to flee from volatile assets — and Bitcoin was first on the chopping block.
2. Whale Activity
Large wallets moved thousands of BTC to exchanges early this morning — a classic signal that big players were preparing to sell. Once the sell walls hit, it sparked a wave of panic.
3. Liquidation Cascade
With leverage at high levels, the sharp move down triggered automatic sell-offs. Overleveraged traders got liquidated, accelerating the drop and making it harder for the market to find a floor.
4. Weak Technical Structure
Bitcoin had been struggling to stay above key support. Once it cracked below $XX,XXX, it opened the floodgates for a deeper move. The charts were already looking shaky — today just confirmed the bearish momentum.
5. Fear is Back
The Crypto Fear & Greed Index swung back to “Fear” territory. Retail investors are nervous. Social media is full of “sell now” chatter. When fear spikes, prices fall — fast.
