📉 Why are cryptocurrencies crashing today? Here’s the real reason (no exaggeration, just data)
Everyone blames something different —
🌍 geopolitical factors, 🏦 the Federal Reserve, 📊 macroeconomic news.
But looking at the flow data of cryptocurrencies on the blockchain along with derivatives, the answer becomes much simpler 👇
🧠 It's a liquidity issue, not a narrative problem.
Why has the price of Bitcoin dropped below $79,000?
Because liquidity disappeared at an inconvenient time.
Over the past 12 hours, the market absorbed 3 clear liquidity waves, totaling about $1.3 billion 💥.
This was not a normal sell-off.
It was a forced liquidation of leverage.
⚠️ Leverage + decreasing liquidity = price gaps
Cryptocurrency liquidity has been volatile and irregular recently 🌊
Yet, leverage remained high. This combination leads to sharp price fluctuations:
The drop triggers liquidations, and liquidations lead to price declines, which in turn lead to more liquidations. A vicious cycle 🔁
That’s why the moves seem sudden, sharp, and exaggerated.
🐑 Sentiment fuels volatility
Cryptocurrency markets are highly affected by emotions.
Right now, sentiment is changing rapidly:
😄 Excessive optimism →
😨 Excessive pessimism
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