Why is the Crypto Market Down Today? Bitcoin Drops Below $115K as Liquidations Surge - Coinedict

The crypto market is down today. Bitcoin has fallen below $115,000, and the total crypto market cap is below $4 trillion. Major altcoins, including Ethereum (ETH), Ripple (XRP), Solana (SOL), and Sui (SUI), have all dropped more than 5%. Smaller tokens like Raydium, Aerodrome Finance, and Bonk experienced even greater losses.

Massive Liquidations Hit Traders

The main reason for today’s crash is a wave of liquidations across crypto exchanges. Highly leveraged long positions were eliminated as prices dropped, putting additional selling pressure on the market.

• 131,000+ traders liquidated in 24 hours
• Liquidations surged 327% compared to the previous day
• The largest single liquidation was $7.83 million

This follows weeks of strong rallies, with many investors locking in profits before the next big move.

Jackson Hole Symposium Looms Large

Another factor affecting the market is the upcoming Jackson Hole Symposium, where Federal Reserve Chair Jerome Powell will speak.

Markets had anticipated a rate cut this year, but recent inflation data suggests otherwise:

• Core CPI jumped to 3.1%
• Producer Price Index climbed to 3.6%
• Inflation expectations remain high

With Donald Trump’s new tariffs adding pressure, Powell may indicate a more cautious approach. This uncertainty has led traders to pull back ahead of his speech.

Technical Pullback After Overbought Rally

In addition to macro news, technical factors also contributed. Many top cryptos became overbought after recent highs. For example:

Ethereum (ETH) reached $4,785 last week, raising its RSI to 87.6, which often signals a correction.

ETH also traded well above its 50-day and 200-day EMAs, making a pullback likely.

Similar patterns are seen in other major altcoins, leading to the widespread selloff.

Is the Bull Run Over?

Despite today’s drop, analysts warn that this may only be a short-term correction, not the end of the crypto bull market. Several positive factors continue to influence the market:

• Rising ETF inflows are boosting institutional demand.
• More corporations are adding crypto to their treasury reserves.
• The U.S. SEC is expected to approve multiple crypto ETFs before the year ends.
• The Fed is still projected to cut rates later in 2025, with further easing likely in 2026.

For now, traders should expect continued volatility as markets balance short-term profit-taking and long-term adoption trends.