๐ The main reason behind todayโs sharp crypto market crash is a combination of these key factors:
Massive Bitcoin sell-off by whales: Over 80,000 BTC worth $9.6 billion were moved from dormant wallets and sold. These coins had been untouched since 2011, and their sudden release triggered panic and heavy selling pressure.
Trump-era tariffs reignited: The U.S. government announced new tariffsโ15% on coal and LNG, and 10% on crude oil. These macroeconomic shocks spooked investors and led to a flight from risk assets like crypto.
Record ETF outflows: Bitcoin ETFs saw over $2.99 billion in withdrawals this week alone, signaling waning institutional confidence.
Liquidation cascade: As prices dropped, leveraged positions were forcefully closed, accelerating the decline. This domino effect is typical during sharp corrections.
Extreme fear in the market: The Fear & Greed Index plunged to 10, a level not seen since 2022, reflecting widespread investor anxiety.
So, the crash is driven by whale activity, geopolitical tensions, institutional exits, and fear-based selling. If youโre considering buying the dip or rebalancing your portfolio, I can help you assess the risks and opportunities
