Crypto didn’t crash for just one reason — it was a perfect storm. Here are the main drivers, in plain terms 👇

1) Liquidity dried up

Global markets are tight right now. High interest rates + strong dollar = less cheap money. When liquidity leaves, risk assets like crypto get hit first.

2) Bitcoin lost key support

Once BTC broke major technical levels, it triggered:

stop-losses

forced liquidations

panic selling

That domino effect drags the whole market down.

3) Mass leverage wipeout

Too many traders were over-leveraged. When price dipped:

longs got liquidated

exchanges auto-sold positions

→ sharp, fast crash 📉

4) Whales & institutions de-risking

Big players rotated into:

cash

bonds

gold

On-chain data shows reduced accumulation and rising exchange activity.

5) No strong bullish catalyst

No ETF inflows surge, no rate cuts, no major adoption news. Markets fall harder when there’s nothing to defend price.

6) Altcoins amplify pain

ETH and alts bleed more than BTC. Once ETH weakens, alt season turns into alt massacre.

Bottom line

This wasn’t a “crypto is dead” moment — it was a liquidity + leverage reset.

Markets shake out weak hands first… then rebuild.