The crypto market is in chaos again! Bitcoin has fallen below $105,000 today, and altcoins are collectively plummeting. What's going on?
1. Regulatory crackdown shocks the market
Today, the U.S. House introduced the "Digital Asset Market Clarity Act," intending to strengthen CFTC regulatory powers, raising concerns about compliance costs. The SEC has also postponed the approval of the Dogecoin ETF to June 17, causing Dogecoin to drop over 10% in a single day, triggering a sell-off in altcoins.
2. Weak U.S. economic data + interest rate hike shadow
GDP shrank by 0.2% in the first quarter, but PCE inflation remains high at 3.4%. Yesterday, Powell met with the president, raising market concerns about a shift to tightening monetary policy, leading funds to flow into gold and treasury bonds, resulting in a sell-off in the crypto market.
3. Technical breakdown + leverage liquidation vicious cycle
Bitcoin surged to $107,000 in the morning but then retreated, breaking key levels and triggering bull sell-offs. Today, over $40 million in liquidations occurred across the network in 24 hours, with 20,000 people being forcibly liquidated, leading to a downward spiral of selling.
4. Whales shorting + institutions cashing out
Today, a whale shorted BTC and ETH using $13 million USDC with 5x leverage and withdrew 7,665 ETH to sell off. Institutions are cashing out at high levels, with Bitcoin ETFs attracting $9 billion but gold ETFs seeing outflows of $2.8 billion, diverting funds and weakening support for the crypto market.
5. Vulnerability of altcoins concentrated and exploded
Market sentiment is bleak, with most of the top 100 altcoins dropping over 10%. XRP collapsed by 4%, SOL fell below $160, and the stagnation of DeFi lock-up has shattered investor confidence.
Summary: A stampede under multiple blows
With tightening regulations, economic worries, technical breakdowns, and large funds shorting combined, the crypto market is unlikely to stabilize in the short term. Major coins are supported by funds, while altcoins rely solely on sentiment, and volatility may continue. Avoid leverage!
Follow me, share your thoughts on the crash in the comments, and remind your crypto friends to stay safe!