Why Is Crypto Crashing Today? Key Reasons Behind Bitcoin’s Drop Below $90K

By / / Crypto News, Daily News
Why Is Crypto Crashing Today? Key Reasons Behind Bitcoin’s Drop Below $90K
Table Of Contents
  1. What’s Causing the Crypto Market Crash Today?
  2. Extreme Fear Grips Crypto Market – What’s Next?
  3. Will Crypto Recover? Key Events to Watch

The cryptocurrency market is experiencing a sharp downturn, with Bitcoin crashing below $90,000 and total market capitalization plummeting by 8.37% to $2.87 trillion. Over the past 24 hours, trading volume has surged 112.50% to $184.3 billion, indicating heightened market activity. However, this surge has been driven by mass sell-offs, causing widespread panic among investors. Bitcoin’s dominance slightly increased to 60.84%, as traders sought refuge in the largest crypto asset amid market uncertainty.

What’s Causing the Crypto Market Crash Today?

1. Trump’s Tariff Policy Sparks Economic Fears

Investor sentiment took a major hit after Donald Trump reaffirmed plans to impose tariffs on imports from Canada and Mexico. With the 30-day pause on these tariffs ending soon, concerns about economic instability have intensified. Uncertainty surrounding Trump’s 2025 trade policies has added to market volatility, leading to sell-offs across both traditional and crypto markets.

2. Major Security Breaches: Bybit & Infini Hacks

High-profile hacks have further shaken investor confidence.

  • Bybit Hack: Hackers stole $1.5 billion in Ethereum during a wallet transfer, exposing security weaknesses. Bybit has promised full refunds and is working with cybersecurity experts to recover funds, even offering a 10% bountyfor assistance.
  • Infini Hack: A former developer exploited vulnerabilities after 100+ days, stealing $49.5 million and laundering the funds through Tornado Cash.

These security breaches have intensified market fear, pushing more investors to liquidate holdings.

3. Spot ETF Sell-Offs Intensify Market Decline

Institutional investors are pulling funds from major Spot Bitcoin and Ethereum ETFs, accelerating the market crash:

  • Bitcoin ETFs: Daily net outflows of – $516.41 million, with cumulative net inflows now at $39.04 billion.
  • Ethereum ETFs: Daily net outflows of – $78.09 million, with total net inflows at $3.08 billion.

These outflows highlight reduced investor interest in crypto ETFs, contributing to today’s price drop. As of now, Bitcoin is trading at $88,303, while Ethereum is hovering around $2,396.

Extreme Fear Grips Crypto Market – What’s Next?

The Fear and Greed Index has dropped into Extreme Fear, reflecting high anxiety among investors. Historically, such fear-driven dips have presented buying opportunities, but the current uncertainty is keeping most investors on edge.

Will Crypto Recover? Key Events to Watch

Despite the bearish trend, there are upcoming catalysts that could spark a recovery:

1. October 2025 – New Crypto ETF Approvals

Major ETFs for Litecoin (LTC), XRP, Solana (SOL), and Dogecoin (DOGE) are set to launch. These couldq attract fresh institutional investments, potentially revitalizing the market.

2. Federal Reserve (FOMC) Meeting 2025

The next FOMC meeting will reveal monetary policy updates that could impact crypto markets. If the Fed signals interest rate cuts or economic stimulus measures, crypto prices may2 rebound.

Final Thoughts: Is This a Buying Opportunity?

While today’s crash is causing panic, history shows that extreme sell-offs often precede strong recoveries. As major ETF approvals and economic updates unfold, investors are watching closely to determine the next move.

📢 What’s your take on today’s crypto crash? Do you think Bitcoin will bounce back?

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