Why Is the Crypto Market Dropping Today? Over the past 24 hours, the crypto market has taken another hit — and this drop isn’t just part of broader macro trends. Here’s what’s actually driving the most recent sell-off: 1. ETF Delay Sparks Uncertainty The SEC’s unexpected delay in deciding on several pending spot Ethereum ETF applications has rattled market sentiment. Traders had been pricing in approvals by the end of this quarter — the delay was taken as a red flag, especially for institutional adoption narratives. 2. Whales Taking Profit at Resistance Levels Bitcoin’s struggle to reclaim the $95K+ zone led to a string of large profit-taking transactions from whales, triggering a cascade of stop-losses and long liquidations across perpetual markets. Over $500M in long positions were wiped in less than 12 hours. 3. Liquidity Drain Ahead of FOMC With the Fed’s next interest rate decision looming, market makers have pulled liquidity from risk-on assets like crypto. This lack of depth has exaggerated price movements, causing sharp intraday dips even on moderate sell pressure. 4. Weak On-Chain Activity Network usage metrics, particularly for Ethereum and Solana, showed a notable dip in active addresses and fee generation this week — signaling waning demand and further undermining bullish momentum. The combination of technical rejections, weak demand signals, and regulatory hesitation is putting the market on edge. Until there’s more clarity from U.S. regulators and macroeconomic signals, expect more volatility.