The global crypto market just dropped by 5.66%, leaving many investors wondering what’s going on. Bitcoin, which was recently aiming for a breakout above $109,000, has dropped back to around $104,000. That’s a 3.6% decline in just 24 hours.
And it’s not just Bitcoin—Ethereum, XRP, Solana, and even meme coins like Dogecoin have followed, falling anywhere between 6% to 15%.
So, what’s behind this sudden crash?
The biggest reason seems to be new signals from the U.S. Federal Reserve. After the latest inflation data came out, showing core CPI still above expectations and producer prices rising, the chances of a rate cut in June have nearly vanished.
According to Fed CME tools, the market now has a 97.4% chance that the Fed will not lower interest rates this month. That’s made investors nervous, and it’s showing in crypto prices.
Another major blow came from the spot Bitcoin ETFs. After several days of strong inflows, June 12 saw a sudden reversal, with $202 million flowing out. Leading the charge was Fidelity’s ETF alone saw a $197 million withdrawal, while ARK Invest’s ETF lost over $10 million.
Surprisingly, BlackRock stayed flat with zero inflows or outflows.
Leverage traders took a big hit. In the last 24 hours, over 247,000 traders were liquidated, with total liquidations hitting $1.15 billion. The largest single liquidation order was a $201 million long on Binance.
If Bitcoin drops further to around $95,800, nearly $11.76 billion worth of long positions are at risk. That could trigger another wave of sell-offs.
Meanwhile, technically, indicators hint at more struggle for Bitcoin as charts show rejection near the $106K resistance zone.
Meanwhile, the MACD is showing a slight bullish crossover, but the momentum is weakening. If Bitcoin fails to hold $104K, we could see a retest of $102K or even $100K soon.
Altcoins are taking a big hit, closely following Bitcoin’s downward trend. The Altseason Index has dropped to 16, showing that Bitcoin still holds market dominance.
Among the biggest losers, Ethereum (ETH) fell by over 9.29%, now trading near $2,508. While XRP, Solana, and Cardano all saw major declines, with no signs of recovery just yet.
The crypto market is down today, June 13, 2025, primarily due to escalating geopolitical tensions in the Middle East (Israel’s military operation against Iran), diminished hopes for a Fed rate cut, significant Bitcoin ETF outflows, and large-scale liquidations of leveraged crypto positions.
New inflation data has diminished hopes for a June Fed rate cut (now 97.4% chance of no cut), making investors nervous and directly contributing to the crypto market’s decline as risk assets become less attractive.
After days of inflows, Bitcoin ETFs saw a $202 million net outflow on June 12, led by Fidelity’s $197 million withdrawal, signaling reduced institutional buying pressure and contributing to the price drop.
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