The crypto market is under pressure again. Total market capitalization has fallen to $2.27 trillion, down just over 2% in the last 24 hours.
Bitcoin has dropped below $66,000, currently trading near $66,180, while Ethereum sits around $1,931.
In just the last hour, more than $30 million in long positions were liquidated, adding to selling pressure. Over 24 hours, Bitcoin liquidations reached roughly $47 million. This sudden wave of forced selling is one of the biggest reasons behind today’s decline.
The main driver of the drop appears to be a leveraged washout. Many traders had bet on prices going higher using borrowed money. When prices started falling, their positions were automatically closed, causing even more selling.
This created what traders call a liquidation cascade.
At the same time, the Fear & Greed Index has plunged to 11 out of 100, which is classified as “Extreme Fear.” That level usually signals panic-like sentiment. The average crypto RSI is around 37, suggesting the market is approaching oversold territory but not fully there yet.
Funding rates have also turned slightly negative, showing that traders are now leaning bearish.
Another important factor is the broader financial market.
Crypto has shown a 68% correlation with the S&P 500, meaning it is moving closely with traditional stock markets. When investors pull money out of risk assets like tech stocks, crypto often follows.
There is no major crypto-specific news causing today’s drop. Instead, this looks like a broader “risk-off” move, possibly influenced by geopolitical tensions and tighter central bank policies.
On top of that, U.S. spot Bitcoin ETFs have seen continued outflows. When institutions pull money from ETFs, it creates steady selling pressure.
The most important level right now is $2.17 trillion in total crypto market cap. This is both a yearly low and a key Fibonacci support level. If the market holds above $2.17T, we could see a short-term relief bounce toward $2.35 trillion.
But if it breaks below that level, the downtrend could continue toward new yearly lows.
Experts are also watching the 7-day exponential moving average near $2.32T. A close above that level could signal that short-term momentum is turning positive again.
Here’s a quick look at top assets:
Most top coins are down between 1% and 4% on the day.
Right now, the market looks fragile. The combination of leveraged liquidations, ETF outflows, and stock market weakness has pushed crypto into a defensive position.
The next 24 to 48 hours are critical.
If ETF flows turn positive and the $2.17T support holds, a bounce is possible. If fear continues and outflows persist, prices may slide further.
For now, the market is in extreme fear mode, and confidence needs time to rebuild.
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