What’s Causing the Crypto Market Crash Today The recent crypto market crash can be attributed to several factors:

- *Geopolitical Tensions*: The US airstrikes on Iranian nuclear sites have heightened fears of a broader conflict in the Middle East, triggering a global "risk-off" sentiment and causing investors to dump riskier assets like cryptocurrencies. Over $636 million in crypto leveraged positions were liquidated as a result.

- *Stronger US Dollar*: The US dollar index (DXY) has surged, which often leads to lower BTC prices since Bitcoin tends to move in the opposite direction of the dollar.

- *Market Liquidations*: The crypto market has seen a wave of liquidations, with over $2.18 billion worth of crypto positions being wiped out in a day, affecting more than 715,000 traders.

- *Bitcoin ETF Outflows*: Continued outflows from Bitcoin ETFs signal investor sell-offs, reducing demand and liquidity, which can drive Bitcoin's price lower and impact the broader crypto market.

- *Federal Reserve's Monetary Policy*: The Fed's commitment to controlling inflation and potential delay in rate cuts may reduce investor appetite for risk assets, including cryptocurrencies.

These factors have contributed to the crypto market's volatility, with Bitcoin and other major cryptocurrencies experiencing significant price drops. The market's future direction will likely depend on the resolution of geopolitical tensions and the Fed's monetary policy decisions ¹ ² ³.