Why Is Crypto Down Today?

Several interconnected factors explain why is crypto down today, creating a perfect storm of selling pressure across digital assets.

Stalled US-China Trade

Talks emerged as the primary catalyst for today's decline. US Treasury Secretary Scott Bessent's confirmation that trade negotiations with China have stalled dampened investor sentiment and triggered risk-off behavior across global markets. This geopolitical uncertainty has historically impacted cryptocurrency prices due to their correlation with risk assets.

Massive Liquidations

amplified the selling pressure, with over $683.4 million in crypto futures liquidated within 24 hours. Long positions accounted for $617.85 million of these liquidations, demonstrating the extent of overleveraged bullish positions in the market.

Technical Breakdown

occurred as the total crypto market cap broke below the critical $3.35 trillion support level. This technical failure triggered algorithmic selling and stop-loss orders, creating additional downward momentum.

ETF Outflows

contributed to Bitcoin's weakness, with spot Bitcoin ETFs recording $385.65 million in net outflows on May 29, ending a 10-day streak of inflows. This institutional selling pressure added to the bearish sentiment.