News View Non-AMP

Crypto Market Crash: 4 Key Factors Driving Today’s Downturn

Published by
Mustafa Mulla

The cryptocurrency market is experiencing a major shakeup, losing over $212 billion in value within the past 24 hours. This 5.4% drop has caused the global market cap to fall to $3.42 trillion. But what’s behind this sudden decline?

Interestingly, the cause of this crash isn’t entirely tied to issues within the crypto market but is closely linked to movements in the U.S. stock market.

From surprising tech developments to massive sell-offs, this downturn has left investors on edge. Read on to know more.

Chinese AI App Rattles Investors

A Chinese AI app, DeepSeek, has unexpectedly shaken up the market. Competing with ChatGPT, DeepSeek recently became the top free app on the Apple App Store. What stands out is that DeepSeek was developed for under $10 million, a far cry from ChatGPT’s $157 billion valuation.

This surprise success has made U.S. investors nervous, with concerns that many American tech stocks might be overvalued. This uncertainty led to heavy selling in the U.S. stock market, which quickly spread to the crypto market, causing losses across the board.

Massive Liquidations Amid the Market Decline

The crypto market drop has led to large-scale liquidations. In the last 24 hours, $613 million worth of positions were liquidated, with long traders losing $569 million. The biggest single liquidation occurred on the HTX exchange, where one position was worth $98.46 million.

  • Also Read :

Bitcoin’s Price Struggle

Bitcoin, the largest cryptocurrency, has dropped by over 5%, now trading at around $99,969. It briefly fell to $99,902 earlier in the day. The $100,000 level is now a critical support point. If Bitcoin falls below this, it could trigger further losses.

However, if Bitcoin rebounds and rises above $105,000, it could regain bullish momentum.

Altcoins Take a Hit Too

Altcoins are also struggling in the current market downturn. Ethereum (ETH), XRP, and Solana (SOL) have dropped between 8% and 10%. Meme coins like DOGE and SHIB have fallen by 8% and 7%, respectively. PEPE and TRUMP tokens saw even bigger losses, dropping nearly 13%.

As the dust settles, it’s evident that the crypto market’s fate is increasingly tied to global events beyond its control.

FAQs

Which altcoins are seeing the biggest losses today?

Altcoins like Ethereum (ETH), Solana (SOL), and meme coins like DOGE and SHIB have all dropped 7-13%.

How do liquidations affect the crypto market crash?

Liquidations of $613M, including $98M on HTX, contributed to the sell-off, intensifying the crypto market downturn.

What is the current price of Bitcoin?

Bitcoin is trading around $98,909.64, with $100,000 acting as a crucial support level to prevent further declines.

Mustafa Mulla

Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.

Recent Posts

BONK Price Breaks Out, Is a 2X Rally Coming Soon?

BONK, Solana’s top-performing meme coin, is on fire. With a 9.26% surge in the last…

July 5, 2025

80,000 BTC Moved After 14 Years: Mystery Transfer or Massive Hack?

Something strange just happened in the Bitcoin world this week as nearly 80,000 Bitcoin, mined…

July 5, 2025

Brazil’s Central Bank Probes $140M Crypto Laundering After Hack

In a cyber heist on June 30, hackers stole approximately $140 million (R$800 million) by breaching…

July 5, 2025

Why Crypto Market is Down Today? (05th July, 2025)

The crypto market today has experienced a broad-based downturn today, with the total industry market…

July 5, 2025

Bitcoin Price Crash Coming? Analyst Predicts 80% Drop Soon

Bitcoin may seem bullish right now, but a leading crypto analyst has issued a shocking…

July 5, 2025

Turkey Blocks 46 Crypto Sites, Including PancakeSwap Amid Regulatory Crackdown

The Turkish Capital Markets Board (CMB) has blocked 46 websites, including the popular decentralized exchange…

July 5, 2025