Why Is the Crypto Market Down Today? Bitcoin Drops as $54B Wiped Out

The cryptocurrency market has taken a sharp hit, losing $54 billion in just 24 hours. The total market cap has now dropped to $3.07 trillion, slipping below the crucial $3.10 trillion support level. Adding to the unease, the Crypto Fear and Greed Index has plunged to 35, signaling rising fear among investors.

Let’s break down the key factors driving this market slump.

Bitcoin ETF Outflows Continue

One of the main reasons behind the decline is the continued outflow from Bitcoin ETFs. On February 10, Bitcoin ETFs saw investors pull out $186 million, with Fidelity, Grayscale, and Invesco leading the exits. The trend continued on February 11, with another $56.7 million leaving Bitcoin ETFs, adding more uncertainty to the market.

Liquidations Add More Pressure

Adding pressure to the ongoing market fall, liquidations have increased, especially among long traders. In the last 24 hours, $224 million worth of crypto positions were liquidated, including $174 million from long positions. 

The largest single liquidation took place on the Bybit exchange, where a BTC/USDT position worth $1.97 million was closed. This influx of liquidations has exacerbated the decline, as many traders are forced out of their positions.

Altcoins Suffer Heavy Losses

Bitcoin isn’t the only one struggling – altcoins have been hit even harder. In just two weeks, the altcoin market has lost a massive $234 billion.

Ethereum, XRP, and Solana have dropped between 5% and 8%, while meme coins like Dogecoin, Shiba Inu, and Pepe have fallen between 5% and 10%. The weakness in altcoins is making the overall market downturn even worse.

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Key Bitcoin Price Levels

Bitcoin, the largest and most influential cryptocurrency, has seen its price drop by more than 3%, now trading around $95,969. The $90,000 level is proving to be a key support point. If Bitcoin fails to hold above this, it could slide further to $93,625.

On the flip side, if Bitcoin regains its bullishness and moves above $103,000, it could find renewed bullish momentum.

For now, traders are closely watching the market, waiting to see if Bitcoin and altcoins can stabilize or if further losses are ahead.

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