Why Is Crypto Down Today?

The crypto markets were back in the red after a period of surging that had lasted almost the last two weeks. The top cryptocurrencies by market cap led this drop, hinting at potential correction or even continuation of a bear market. The crypto markets have dropped by 2.4% in the last 24 hours, with the current market cap at $3.8 trillion as of press time.

None of the top 10 cryptos registered a positive price change. Ripple (XRP) and Dogecoin (DOGE) were the biggest losers in the last 24 hours, as per CoinMarketCap.

As these drop continue to fill the crypto markets, the weekend could be set for another drop. However, if the sentiment about a continuation holds, things could change as traders could use the period to buy the dips. But what is causing this drop?

Why Is Crypto Down Today? Markets Drop 2.4% as Top Tokens Bleed

The crypto liquidation heatmap posted by analyst cryptoholdpod on X (formerly Twitter) showed that the markets were bleeding. Major crypto pairs were experiencing huge liquidations in the last two days, totaling $1.5 billion.

The total daily liquidation value was more than half a billion as of press time. Even Binance Coin (BNB) which had recently made its new ATH above the $800 mark faced this dull day in crypto.

Other altcoins that faced this were Solana (SOL), Cardano (ADA), Sui Network (SUI), Litecoin (LTC), and Aptos (APT) among others. Tron (TRX) and Bitcoin Cash (BCH) pairs did not see as much losses as fellow altcoins.

Galaxy Digital Sells 30K BTC, Another Reason Why Crypto Is Down

Additionally, whales and institutions were involved in massive selling or forced closure of running trades due to losses or as a strategy to protect gains.

Galaxy Digital was in the lead among the institutions as they liquidated about 30,000 BTC of their Bitcoin holdings. The Bitcoins were sold overnight at an average price of $115K.

Additionally, the biggest crypto was down, explaining why crypto was down. This resulted from liquidations in long positions where a single whale lost $83M. This whale, Aguila Trades, had long a position worth more than 720 BTC.

The whale has been among the most profitable traders on BTC pairs and had recently joined the Hyperliquid platform. Despite covering his earlier loss of $35M and putting himself at a $3M position, this loss reverted him to the trenches.

Additionally, Ethereum whales saw over $122M in liquidations where the longs accounted for $67M as compared to $55 Million owned by sellers. This showed whales across multiple cryptos were getting shaken out, which could have fueled this drop.

Binance, Coinbase, Exchanges Selling

Why is crypto down when institutions and exchanges are meant to stabilize markets?

Moreso, exchanges that are institutional participants were involved in this roller-coaster. According to MartyParty on X, Coinbase and Binance were selling to a market maker, Wintermute.

As per the on-chain data, the exchanges had sold thousands of Ethereum in exchange for USDC. This trend was lastly seen when markets topped in the last quarter of 2024 and early 2025. The market makers and exchanges collaborated to take prices down before they started repurchasing.

With all the indicators showing the potential source of the drop in the market, it is worth watching the moves by these big players. A resumption in buying could mean the markets are about to go up again. However, continued selling, especially by these exchanges, could put the crypto markets into a more downside potential.