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<p>The crypto market is in freefall, losing over $400 billion in just 24 hours. Major players like Bitcoin, Ethereum, XRP, and Dogecoin have all taken heavy hits, some falling by nearly 20%.</p>   
<p>But what’s behind this sudden crash? A mix of global events and shifting market dynamics are shaking things up, and the fallout is being felt across the board. Let's take a closer look at what's causing this turmoil.</p>   
<h2 class="wp-block-heading" id="h-trade-war-sparks-market-panic">Trade War Sparks Market Panic</h2>   
<p>One of the main reasons behind the market drop is the recent trade war triggered by U.S. President Donald Trump. By declaring a national emergency under the 1977 International Emergency Economic Powers Act (IEEPA), Trump imposed heavy tariff rules—25% on Mexico and Canada, and 10% on Chinese imports.</p>   
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<p>This move caused immediate panic, with fears of rising prices, inflation, and economic instability. U.S. stock indexes dropped sharply, pulling the crypto market down with them.</p>   
<h2 class="wp-block-heading" id="h-bitcoin-network-activity-slows-down">Bitcoin Network Activity Slows Down</h2>   
<p>Aside from external economic factors, Bitcoin’s network activity has declined significantly. Data from <a href="https://cryptoquant.com/insights/quicktake/6787b6b09b745157280ee65f-Momentum-Dead-Cross-in-Active-Addresses-A-Bearish-Signal-for-the-BTC-Network">CryptoQuant shows</a> that the mempool is nearly empty. This means fewer transactions are taking place, which is unusual for Bitcoin.</p>   
<p>Additionally, Bitcoin transaction fees have fallen to just 1 sat/vB, signaling low demand for block space. This is the lowest level of activity recorded since March 2024.</p>   
<h2 class="wp-block-heading" id="h-crypto-liquidations-surge">Crypto Liquidations Surge</h2>   
<p>The market has also seen a wave of liquidations, <a href="https://www.coinglass.com/LiquidationData">with over $2.18 billion</a> worth of crypto positions being wiped out in a day, affecting more than 715,000 traders.</p>   
<p>Long traders suffered the most, losing $1.85 billion, while short traders lost around $334 million. The largest single liquidation happened on Binance, where one trader lost $25.64 million in a single trade.</p>   
<h2 class="wp-block-heading" id="h-stronger-u-s-dollar-adds-pressure">Stronger U.S. Dollar Adds Pressure</h2>   
<p>Another factor weighing down Bitcoin is the strengthening U.S. dollar. The U.S. Dollar Index (DXY) has surged to 108.50, while the 10-year Treasury yield has risen above 4.54%.&nbsp;</p>   
<p>Historically, Bitcoin moves in the opposite direction of the dollar and Treasury yields, meaning a stronger dollar often leads to lower BTC prices.</p>   
<h2 class="wp-block-heading" id="h-bitcoin-struggles-to-hold-key-support-level">Bitcoin Struggles to Hold Key Support Level</h2>   
<p>Currently, Bitcoin is struggling to stay <a href="https://markets.coinpedia.org/bitcoin/" target="_blank" rel="noreferrer noopener">above $93,000</a>. If it drops below the key support level of $90,000, analysts warn that further declines could follow. Meanwhile, the Crypto Fear &amp; Greed Index has dropped to 38, shifting from Neutral to Fear.</p>   
<p>While the market is under pressure, Bitcoin’s future isn’t entirely bleak. If Bitcoin can break above $95,000, it may regain its bullish momentum. But for now, the market remains uncertain, and investors are watching closely to see what happens next.</p>

Why Is Crypto Crashing Today? $400B Bloodbath Triggers Panic

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