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The crypto market is once again under pressure today, falling about 2%, pulling back to a total value of $2.61 trillion. Interestingly, 87 out of the top 100 cryptocurrencies are currently trading in the red.
Bitcoin, the leading cryptocurrency, has dropped to its lowest level since April last year and is now trading around $77,324. Other major coins, including Ethereum, XRP, Solana, and DOGE, have also seen sharp declines today.
So, what is driving the crypto market lower today?
Kevin Warsh as New Fed Chair
One of the main reasons behind today’s drop is renewed fear around interest rates. Market sentiment turned negative after U.S. President Donald Trump nominated Kevin Warsh as the next Federal Reserve chair.
Warsh is known for supporting tighter monetary policy, which has raised concerns that interest rates could stay higher for longer. Meaning investors usually move money away from risky assets like Bitcoin.
Adding to the uncertainty, investors are also concerned about the ongoing partial U.S. government shutdown. House Speaker Mike Johnson said the House is working to end the shutdown by today.
Such political uncertainty often pushes investors away from risky assets, which puts more pressure on crypto prices.
Bitcoin and Ethereum ETF Outflows Continue To Hurt
Another major factor dragging the market lower is continued outflows from crypto exchange-traded funds. Last week alone, Bitcoin ETFs saw nearly $1.5 billion in outflows, signaling that large institutions are reducing exposure. Major players like BlackRock, Fidelity, and Bitwise led the withdrawals.
Ethereum ETFs also faced pressure, recording close to $460 million in outflows over the same period. These exits have added selling pressure to the spot market.
Liquidation Add Fear In the market
The sell-off was made worse by heavy liquidations. More than $800 million worth of leveraged crypto positions were wiped out in the last 24 hours, mostly from long trades using high leverage.
The largest single liquidation occurred on Hyperliquid, with a BTC-USD position worth $15.46 million.
As liquidations surged, fear increased. The Crypto Fear and Greed Index has now dropped to 15, signaling extreme fear.
How Low Could Bitcoin Price Go?
After the recent sharp fall, veteran trader Peter Brandt has lowered his Bitcoin price target from $58K to $54K. Bitcoin is now hovering near key support around $74,500, and if this level breaks, the next major drop could take BTC down to about $66,530.
Another crypto trader, Captain Faibik, warned that Bitcoin has lost a very important long-term support level, the weekly EMA100, for the first time in more than 840 days. This is seen as a negative signal on bigger timeframes.
For now, traders are closely watching the $68,000 to $70,000 range.
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FAQs
The crypto market is down due to interest rate fears, U.S. political uncertainty, ETF outflows, and heavy leveraged position liquidations.
Bitcoin may drop to $68K–$70K if key support breaks, with potential further declines to $66,530 according to traders tracking major technical levels.
Extreme fear, shown by a low Fear & Greed Index, signals panic selling and heightened market uncertainty, often leading to volatile price movements.
Recovery depends on interest rate clarity, political stability, and investor confidence, but short-term rebounds are possible if selling pressure eases.