Why is crypto falling today? The answer lies in leverage and macroeconomics.

The cryptocurrency market experienced a severe shock overnight. Total capitalization dropped by 5.7%, losing nearly $177 billion before stabilizing at $2.9 trillion. After a partial rebound, digital assets remain under downward pressure, declining 4% over the past day. This is not just a normal correction – a specific cause is behind the scenario: avalanche liquidations and macroeconomic tensions.

Long position liquidations trigger the crash

The reason for today’s crypto crash is noteworthy. Over the past 24 hours, more than $576 million in long positions have been forcibly liquidated on major platforms. Bitcoin (BTC) and Ethereum (ETH) were at the epicenter of this wave, revealing premeditated leverage exposure.

The mechanism was relentless: when prices fell below key technical levels, algorithms automatically closed positions, deepening the decline. Instead of a single sell-off impulse, the market experienced a feedback loop, where each loss triggered another wave of liquidations.

Bitcoin loses, Ethereum drops more

Bitcoin is down 4.1% today, falling below the psychological threshold. Ethereum drops more sharply – with a bottom at 6.5%, signaling weaker buying interest among institutional investors.

Among alternative tokens, Hyperliquid (HYPE) stands out negatively: the token fell by 9.4%, showing drainage from the more risky asset sector. Disappointment on this front contrasts with positive capital flows into XRP ETFs, which have recorded 20 consecutive days of inflows.

Macroeconomics intensifies pressure

Why is crypto falling more sharply? The answer lies beyond the digital market alone. Investors are watching uncertainty around the Bank of Japan’s monetary policy, and speculation about tightening financial conditions is spilling over into all high-risk asset classes.

Cryptocurrencies, remaining a sensitive beta barometer, react proportionally. The combination of local leverage and macroeconomic pressure created ideal conditions for a sudden correction.

Where to look for support?

On a market level, total crypto capitalization has fallen 32% from October’s peak. The key psychological level is $3.0 trillion. Below this zone, support lies between $2.81 trillion and $2.73 trillion – if this bottom is broken, the risk of further deepening increases.

Bitcoin is defending the support zone at $85,200. This is a repeatedly tested line of defense. Breaking below it risks a decline to $83,500, then $80,400.

For Hyperliquid, critical support is at $26.01. The token shows RSI divergence suggesting exhaustion of selling pressure, but confirmation requires moving above $29.68.

What’s next for the market?

Bitcoin needs to recover the $90,700 area to confirm a change in sentiment. This would mean a 5.5% increase and indicate a return of buyer control. The $94,500 level remains the main decision zone.

Despite current turbulence, reducing leverage on the buy side decreases the risk of further forced sales. The market is entering a cleansing phase, where speculative excess will be absorbed. We await signals from monetary policy, which could prove crucial for the next direction.