The crypto crash today is mainly attributed to several factors:
• US Treasury Secretary Scott Bessent announced plans to stop Bitcoin purchases and is utilizing confiscated crypto holdings, which represents a negative impulse for the market.
• Surprisingly high inflation data (PPI data) from the US has increased pressure on cryptocurrencies, as high inflation often leads to uncertainties and volatility.
• As a result of these events, Bitcoin, Ethereum, and XRP are under strong selling pressure. Bitcoin fell to around $118,768, Ethereum lost about 3.67 percent, and XRP plunged by more than 5 percent.
• Expectations for interest rate cuts by the US Federal Reserve remain, but the current situation with inflation data could lead to uncertainty in the market.
• Additionally, the crypto market is generally prone to strong fluctuations, often triggered by combinations of political, economic, and market technical factors.
In summary: The current crypto crash today is mainly a reaction to political decisions, particularly the suspension of Bitcoin purchases by the US government, as well as unexpectedly high inflation data from the US that is putting pressure on the markets.