Why Is the Crypto Market Crashing Today? Major Causes of the Decline

By / / Crypto News, Daily News
Why Is the Crypto Market Crashing Today? Major Causes of the Decline
Table Of Contents
  1. Crypto Market Today: Major Events & Trends
  2. Ethereum Whale "7 Siblings" Buys $126M ETH Despite Market Crash
  3. Robert Kiyosaki Sees a Crypto Market Crash & Buying Opportunity
  4. Utah Becomes the First U.S. State to Hold Bitcoin Reserves
  5. Trump's Tariffs Affect Crypto Mining in North America
  6. Bitcoin ETF Inflows Drop 68% Due to Fed Decision & Deepseek AI Impact
  7. Conclusion: Why Is Crypto Crashing Today?

Crypto Market Today: Major Events & Trends

The cryptocurrency market is seeing extreme fluctuation, and Bitcoin, Ethereum, and other significant assets are sharply falling. Several major events have caused today’s market crash, such as whale activity, macroeconomic concerns, regulatory uncertainty, and geopolitical tensions.

Here is what happened in crypto today and what it means for investors.

Ethereum Whale “7 Siblings” Buys $126M ETH Despite Market Crash

One of the biggest developments today was a massive Ethereum purchase by a well-known whale, “7 Siblings.”

According to the on-chain analytics platform Lookonchain, the whale acquired 50,429 ETH worth $126 million during the market dip.

  • The largest bulk purchase was 45,047 ETH for $111.72 million, followed by another 5,382 ETH for $14.5 million at an average price of $2,480 per ETH.
  • This means institutional interest in Ethereum in the long run, even in the face of short-term turmoil.
  • Many traders are now looking at this as an accumulation, a sign that the market might recover or only temporarily bounce back.

Robert Kiyosaki Sees a Crypto Market Crash & Buying Opportunity

Financial author Robert Kiyosaki warned about a huge market-wide crash affecting stocks, real estate, and Bitcoin.

  • He believes millions will lose their jobs, but also sees this as the best time to build wealth.
  • Kiyosaki advises investors to remain calm, manage risks, and look for strategic buying opportunities during this downturn.
  • His bold prediction has ignited heated debates among traders and analysts, with some agreeing that economic instability could create a golden entry point for long-term investors.

Utah Becomes the First U.S. State to Hold Bitcoin Reserves

Another major news comes from the United States, where the state of Utah is now about to become the first to pass a law in creating a strategic Bitcoin reserve.

  • According to Dennis Porter, chief executive of Satoshi Act Fund, 11 states have submitted related legislation.
  • He, however, cited Utah as faster since the latter has only a 45-day legislative cycle.
  • It may also mean a benchmark on the way that states will eventually embrace BTC should this become effective.

This development shows that political support for Bitcoin is increasing, even with the uncertainty of regulations.

Trump’s Tariffs Affect Crypto Mining in North America

New tariffs introduced by former President Donald Trump on Canada, China, and Mexico have begun to impact U.S. cryptocurrency mining operations.

  • The U.S. mining industry relies heavily on foreign suppliers such as Bitmain and Taiwan Semiconductor for ASIC miners and GPUs.
  • As a result, Canada leveled a 25% tariff on American products, affecting its 7% portion of the global Bitcoin hash rate.
  • Mexico, with a forecasted $99.9 million crypto mining market in 2030, also imposed similar tariffs.
  • The increased mining costs are hurting profitability amid a weakened crypto market from trade tensions.

Bitcoin ETF Inflows Drop 68% Due to Fed Decision & Deepseek AI Impact

One of the biggest shocks to the crypto market today is a sharp decline in Bitcoin ETF inflows.

According to SoSoValue data, inflows in U.S. spot Bitcoin ETFs fell by 68%. Inflows changed from $1.76 billion to $559.84 million.

Two reasons were behind it:

  • The interest rate decision from the Federal Reserve has made investors cautious.
  • Deepseek AI, a Chinese AI platform that has been described as the low-cost alternative to ChatGPT, led to $457.48 million in ETF outflows and nearly $1 billion in crypto liquidations.

This means that macro events and technological advancements beyond crypto are impacting investor sentiment.

Conclusion: Why Is Crypto Crashing Today?

The crypto market is under a perfect storm of challenges, which include:

  • Whale Accumulation – While some whales, like “7 Siblings,” are buying the dip, retail investors remain cautious.
  • Macroeconomic Pressures – The Federal Reserve’s policies and Robert Kiyosaki’s warning about an economic crash have fueled uncertainty.
  • Regulatory & Political Factors – Trump’s tariffs are raising mining costs, while Utah’s Bitcoin reserves signal institutional interest.
  • ETF Outflows & AI Disruption – Bitcoin ETF inflows decrease by 68% amid rising fear surrounding the rise of Deepseek AI.

Short-term market volatility remains pretty high. Nonetheless, more-experienced investors try to take market corrections as some kind of window of opportunity, and we now have panic buying or panic accumulating?

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