News
  • Debashree Patra
    author-profile
    Debashree Patra right arrow
    Author

    Fun-loving and cheerful, a passionate blockchain and crypto writer who knows no boundary…connect if you share the same passion. With 10+ years of writing experience, I am a Crypto Journalist by chance, exploring, and learning all the dynamics of the sci-fi action-filled crypto world. Currently, focusing on cryptocurrency news and price data. With a passion for research and challenging my capabilities, I am slowly getting into the crypto arena to bring new insights every day.

    • Reviewed by: Qadir AK
      author profile
      Qadir AK right arrow
      Reviewed

      Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

      • author facebook
      • author twitter
      • author linkedin
    • 2 minutes read

    Crypto Market Crash: Why Bitcoin and Altcoins are Dropping Today?

    Story Highlights
    • Crypto market hits a six-month low as Bitcoin and Ethereum plunge, inflation shocks cut Fed rate-cut hopes, and liquidations accelerate the sell-off.

    • Altcoins sink as $4.7B options expiry heightens volatility, with analysts watching Bitcoin’s $94K support amid deepening macro and tech-market stress.

    The crypto market is deep in correction mode, with the global market cap falling to a six-month low near $3.27 trillion. Both Bitcoin and Ethereum have retreated sharply, dropping 23% and 36% from their all-time highs. Sentiment has turned fearful across the market, with the Crypto Fear & Greed Index plunging to 15, reflecting rising anxiety among traders.

    Bitcoin has now fallen back to levels last seen in June 2025, marking one of its toughest Novembers in recent years as the price slid from its October peak to the mid-$90,000 range.

    Why Bitcoin Is Falling

    Popular online theories about whales moving coins, governments dumping Bitcoin, or critics like Paul Krugman sparking panic don’t match the on-chain or market data. Even slowing ETF inflows fail to explain the severity of the crash.

    Instead, the primary pressure comes from a sudden macroeconomic shift. The latest U.S. inflation report came in hotter than expected, sharply reducing the chances of a December Federal Reserve rate cut. With financial conditions tightening, risk assets, including tech stocks and crypto, began to unwind. Weakness in the AI sector added to the stress, turning a gradual decline into a broad market pullback.

    Leverage Wipeouts and Traditional Market Stress

    The downturn intensified as over-leveraged positions in the crypto market were rapidly liquidated. This cascade of forced liquidations pushed Bitcoin lower at high speed, adding fuel to an already tense environment.

    Traditional markets also showed signs of strain. SoftBank’s unexpected sale of its entire Nvidia stake shocked tech investors, while the collapse of two subprime hedge funds drew comparisons to early 2007. Altcoin Daily analyst highlighted how these cross-market fears spilled into crypto, deepening the decline.

    Options Expiry Adds More Pressure

    Today’s expiration of $4.7 billion in Bitcoin and Ethereum options has injected even more volatility. Put volume has surged, signaling that traders are positioning for further downside. With Bitcoin’s max pain level much higher than current prices, many traders are betting on a drop below $95,000.

    Ethereum is witnessing similar bearish positioning, with expectations building for a move under $3,000.

    Despite the turmoil, analysts emphasize that Bitcoin historically moves in sharp cycles. Michael Saylor reinforced this view, noting that Bitcoin often reaches new highs, corrects heavily, and then rebounds stronger. Volatility isn’t a flaw, it’s part of Bitcoin’s long-term growth pattern.

    Altcoins Deep in Red

    As Bitcoin leads the decline, major altcoins such as XRP, BNB, SOL, ADA, and ZEC have fallen 5–12% in the past 24 hours. Meme coins like DOGE, SHIB, and PEPE have also erased earlier gains, with PEPE down 80% this year.

    With analysts eyeing potential Bitcoin support near $94,000, many traders expect more downside in the broader altcoin market as well.

    Never Miss a Beat in the Crypto World!

    Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.

    FAQs

    Why is the crypto market crashing right now?

    A hotter U.S. inflation report reduced chances of rate cuts, triggering a broad sell-off in risk assets like crypto and tech stocks.

    How are traditional markets affecting crypto today?

    Tech-sector stress, SoftBank’s Nvidia sale, and hedge fund troubles created fear that spilled into crypto, amplifying the downturn.

    Why are today’s Bitcoin and Ethereum options expiries adding volatility?

    Nearly $4.7B in options are expiring, with heavy put activity showing traders expect more downside, increasing market swings.

    Are altcoins falling faster than Bitcoin?

    Yes. Major altcoins and meme coins are dropping 5–12% as Bitcoin weakness pressures the entire market, pushing deeper corrections.

    Trust with CoinPedia:

    CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.

    Investment Disclaimer:

    All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.

    Sponsored and Advertisements:

    Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.

    Show More

    Related Articles

    Back to top button