The global crypto market is facing a sharp downturn today, with its total market cap falling to $3.36 trillion, down 3.7% in just 24 hours. Trading volume surged to $149 billion, showing a panic reaction from both short- and long-term holders.
While Bitcoin dominance has slightly increased to 60.8%, Ethereum’s dominance has dropped to 8.62%, reflecting a more severe hit to altcoins.
Why is Crypto Market Down Today?
Moody’s Downgrade Crashes U.S. Stocks: The largest cause of the collapse today was the news of Moody’s downgrade, which resulted in a surprise sell-off in US stock indexes. According to The Kobeissi Letter, Dow Jones lost 332.9 points, S&P 500 lost 49 points, and Nasdaq fell 197.1 points — both just short of 1% lower.
Source: X
Since crypto tends to follow broader market sentiment, this fall resulted in a surprise drop in coin prices. Downgrade: The downgrade triggered credit risk and economic uncertainty issues, undermining faith in traditional as well as virtual markets.
Liquidation and Mass Sell-off: As per Coinglass data, mass liquidations, which triggered a sharp drop in prices, is another reason behind the recent crash. Over 154,000 traders, valued at $667 million, were liquidated in just 24 hours, including one worth $8.21 million ETH-USDT position on HTX.
Source: Coinglass
Panic escalated as one of the largest Ethereum whales sold 10,543 ETH for $26.1 million and lost $2 million in the process. All these incidents, coupled with pressure from the stock markets, significantly contributed to the current drop in the prices of crypto.
Coinbase Hack Case Takes New Twist: Another shocking tale was added to the fear. Retired artist Ed Suman lost more than $2 million worth of crypto after he was scammed. He had 17.5 BTC and 225 ETH stored in a Trezor wallet. He was phoned by a scammer pretending to be a Coinbase representative and received a spoofed Coinbase alert. He lost the seed phrase. Nine days later, the whole portfolio was stolen. This occurred during the time when Coinbase had been hacked on May 15, and there was concern for security and trust.
Bitcoin, Ethereum, XRP, Solana- All in Red: Cryptocurrency market fell as major coins plunged after fresh regulatory pressure and investor doubt. Bitcoin fell 0.89% to $102,947.91, and Ethereum fell 3.81% to $2,411.52. XRP and Solana both fell to $2.31 and $162.50, which was down 3.19% and 5.61%, respectively. One of the most significant drivers of the market collapse is intensifying regulatory oversight by international finance regulators, putting investors in the chills and leading to a sell-off in a wave of digital assets.
Will Crypto Market Rise Again?
Despite the fear, the crypto fear and greed index shows the market is still in “Greed” territory:
This means that although prices dropped, investors still believe in the long-term potential of the sector.
Financial author Robert Kiyosaki shared a positive note, hinting at a recovery. He warned that problems since 1971, when the U.S. dropped the gold standard, are still causing damage. He believes a new crisis could come from $1.6 trillion in student debt. His advice? Don’t depend on fiat money—save real assets like gold, silver, and Bitcoin.
Conclusion
Today’s crash is a mix of global fear, big sell-offs, liquidation pressure, and scams. Moody’s downgrade pulled down U.S. stock prices, and that shook up crypto prices too. The losses from one whale and the retirement scam case have only made things worse.
