Crypto Crash Reasons: Here is why Cryptos are Crashing
The entire crypto market is bleeding after $Bitcoin dropped to $89,300.46, dragging altcoins into double-digit losses. If Bitcoin fails to reclaim 90K, analysts now warn of a deeper market-wide correction with a potential slide toward $82,000.
BTC/USD price chart over the past 24 hours - TradingView
Crypto Crash Reasons: Why are Cryptos Crashing
1. Massive ETF Outflows Trigger Liquidity Shock
The first and biggest driver of the crypto crash is the $869 million in Bitcoin ETF outflows in a single day, with $622 million leaving over the week.
This caused a chain reaction across the entire market:
- BTC liquidity thinned dramatically
- Volatility spiked
- Altcoins became more vulnerable to sharp moves
- Institutions pulled back risk exposure
Because ETFs now dominate market structure, when they sell, all cryptos fall — not just Bitcoin.
2. Long-Term Holders Sell 815,000 BTC, Pressuring the Whole Market
Long-term holders offloaded 815,000 BTC (~$79B) over the past 30 days — the biggest selling wave since early 2024.
Why this matters for crypto:
- “Diamond hands” turning into sellers signals peak uncertainty
- Market absorbs huge supply quickly → prices drop
- Altcoins follow BTC liquidity trends and crash even harder
This supply flush didn’t just hit Bitcoin — it cascaded into Ethereum, Solana, XRP, and every major altcoin.
3. Market Sentiment Collapses Into Extreme Fear
The Bitcoin Fear Greed Index dropped to Extreme Fear, a level typically associated with:
- Panic selling
- Forced liquidations
- Sharp declines in altcoin valuations
- Traders exiting positions to avoid deeper losses
When fear spikes, liquidity dries up, and altcoins are the first to bleed. This sentiment collapse accelerated the crypto-wide crash.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Crypto Takes a Hit, ARK Invest Seizes Opportunity with $10M Optimistic Investment
- ARK Invest bought $10.2M in Bullish shares on Nov 17, defying its 4.5% stock drop and six-month 46% decline. - Bullish reported $57M Q2 revenue (vs $67M prior) but turned $108. 3M profit after a $116.4M 2024 loss, ahead of its Nov 19 earnings. - The purchase aligns with ARK's strategy to accumulate crypto assets during downturns, following recent buys in Circle and BitMine. - Analysts debate crypto market bottoming, with Bitcoin's ETF outflows and Fed rate-cut uncertainty (52% chance in Dec) seen as key

The ICP Bull Run: Assessing the Role of Infrastructure in the Web3 Age
- ICP Network expands as a decentralized cloud leader via strategic alliances, AI-driven infrastructure, and institutional partnerships with Microsoft/Google Cloud. - TVL surged to $237B in Q3 2025, but DApp engagement fell 22.4%, highlighting reliance on speculative capital over organic user growth. - Industrial IoT innovations (PMC controllers, IoTstar platform) and on-chain AI execution position ICP as a hybrid blockchain-industry 4.0 solution leader. - Institutional adoption in healthcare/finance and d
Zcash (ZEC) Sees Price Rally in November 2025: Network Enhancements and Growing Institutional Interest Drive Upward Trend
- Zcash (ZEC) surged 472% to $420 in late 2025, driven by protocol upgrades and institutional adoption. - ECC enhanced privacy/usability via sapling address expansion, P2SH multi-signature support, and Zashi wallet improvements. - Grayscale's $137M investment and U.S. regulatory clarity (Clarity/Genius Acts) boosted institutional confidence in Zcash's compliance-friendly privacy model. - Zcash's market cap surpassed $7B as shielded pools held 30% of supply, reflecting growing demand for privacy-compliant c
Is Zcash (ZEC) Poised for Bullish Move? This Emerging Fractal Setup Suggest So!

