Today, the cryptocurrency market suddenly dropped by 3.4% in just a few hours, wiping billions off the total market capitalization. Meanwhile, the price of Bitcoin has fallen to a two-week low and is now trading at around $66,510.
Other major cryptocurrencies such as ETH, XRP, Solana, and AVAX also followed the decline, each falling by about 5%. As a result, market sentiment has shifted Extreme fearWith the index reaching 23.
So, what is really causing the cryptocurrency market to crash today?
US 10-year Treasury yields hit their highest levels in July
One of the biggest reasons behind this decline is the rise in US Treasury yields. The 10-year bond yield is approaching 4.5%, its highest level since July. Higher yields make risky assets like cryptocurrencies less attractive as investors shift toward safer returns.
Meanwhile, the US Dollar Index (DXY) rose 0.57% this week to 100.148. A rising dollar usually puts pressure on Bitcoin and other cryptocurrencies. Adding to the uncertainty is that the MOVE index, which tracks bond market volatility, jumped 18% in just 24 hours.
Analysts also point to geopolitical tensions in the Middle East, creating a risk-free environment, pushing traders away from volatile assets like cryptocurrencies.
The $15.58 billion options expiration adds to market volatility
Another major factor is a Big push Of Bitcoin and Ethereum options expiring on Friday. The total value of expiring contracts is about $15.58 billion, with Bitcoin accounting for about $14 billion. The key level that traders are watching is near $75,000, often called the “maximum pain” point.
Ethereum also has $2.2 billion worth of options expiring, with a key level around $2,300. Large expiry periods like these often result in increased volatility as traders adjust their positions before settlement.
$451 million in liquidations hit the market hard
Long liquidations also accelerated the decline. In the last 24 hours, a total of 122,488 traders were liquidated $451.59 million. The largest single liquidation occurred on Hyperliquid, which involved a $3.96 million BTC-USD position.
At the same time, institutional demand also weakened. Bitcoin ETFs recorded sustained outflows this week, led by BlackRock, followed by Fidelity and Bitwise. This suggests that large investors are reducing exposure during the current uncertainty.
As of now, Bitcoin is trading near $66,500, down about 4%, while Ethereum is hovering around $1,990, also showing notable losses as market pressure continues.
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