A mix of geopolitical tension, liquidations, and Fed uncertainty.

First, there's growing concern in the Middle East—Israel has intensified its military actions against Iran, leading to a general "risk-off" mood across global markets. Investors are pulling out of volatile assets like crypto and moving into safer assets like USD and gold.

Second, a large wave of leveraged long positions has been liquidated in the past 24 hours—over $350 million across $BTC , $ETH , and altcoins. This kind of forced selling pushes prices down even harder, especially when sentiment is already weak.

Third, everyone’s watching the Federal Reserve meeting tomorrow. Traders were hoping for rate cuts soon, but with sticky inflation data and cautious Fed messaging, that hope is fading. This makes speculative assets like crypto less attractive for now.

On top of that, BTC hit technical resistance around $108K and failed to break higher. So some traders took profit, and now price is correcting back toward support.

In short, today’s drop is mostly due to:

Escalating geopolitical risk (Israel–Iran)

Heavy liquidations of long positions

Fear of hawkish Fed stance tomorrow

A technical correction after BTC hit resistance