Why is the Crypto Market Down Today? Here’s the Cause!

Bittime - Crypto market down today, with many major crypto assets such as Bitcoin, Ethereum, XRP, Dogecoin, and Solana experiencing major pressure. 

So, what is the cause of the crypto market down today? Read this article to find out more!

Crypto Market Down: Market Cap Falls 

The crypto market down today, with global crypto market capitalization plunged more than 2%, falling from $3.34 trillion to $3.21 trillion.  

BTC and ETH prices are approaching critical support levels, while altcoins such as XRP, BNB, SOL, and SUI are recording losses of between 3-8%. 

Panic selling that hit the market further worsened the situation. Many investors dispose of their assets to avoid greater losses.

Read Also: 3 Crypto Narratives to Pay Attention to This January 

Market Crypto Down: Massive Liquidation 

When the crypto market went down today, more of $400 million in crypto assets liquidated in the last 24 hours. A total of 170 thousand traders were affected, with the largest liquidation order reaching $8.21 million on Binance.

Long positions worth $330 million and short positions worth $70 million were liquidated. BTC, ETH, DOGE, SOL, and XRP were the assets most affected. 

In the last hour alone, $55 million in crypto assets were liquidated, further worsening today's market situation.

Causes of Crypto Market Down

Stronger-than-expected US jobs data is one of the causes of the crypto market down today. This shows that the US economy is still quite strong, which raises concerns about inflation.

President-elect Donald Trump will reportedly impose higher inflation rates, adding pressure to markets. 

Meanwhile, the Federal Reserve is expected to delay further interest rate cuts this year, as confirmed by Wall Street.

The US dollar index (DXY) rose above 110, its highest level since 2022, while the 10-year bond yield hit 4.8%, its highest since October 2023. This combination put enormous pressure on the price of Bitcoin and other crypto assets.

Read Also: Crypto ETFs 2025: Crypto Assets That Have the Potential to Be Approved by Regulators 

Cryptocurrency FAQs

What is Cryptocurrency?

Cryptocurrencies are digital assets that use blockchain technology to secure transactions, control the creation of new units, and verify asset transfers. Examples of the most popular cryptocurrencies are Bitcoin and Ethereum.

Apa Cryptocurrency Aman?

Cryptocurrencies are relatively safe because they use blockchain technology, but remain vulnerable to hacking if not stored properly. Use a secure digital wallet and avoid sharing passwords for extra security.

Are Cryptocurrencies Legal in Indonesia??

Cryptocurrencies are legal in Indonesia as digital assets and can be traded on platforms registered with CoFTRA. However, cryptocurrency has not been recognized as a legal means of payment in Indonesia.

How to Buy Crypto with Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Additionally, visit Bittime Blog to get various interesting updates and educational information about the world of crypto. Find trusted articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your knowledge in the world of crypto.

Reference

Coingape, Crypto Market Crash: Reasons Why Bitcoin, ETH, XRP, DOGE, SOL, SUI Are Falling, accessed January 14, 2025.

Author: IPR