Why Is Cryptocurrency Plummeting Today? BTC Dropped Under $112K And $1.7 Billion in Liquidations – Top Digital currency To Purchase During This Dip?
Crypto markets are facing significant pressure today, prompting the major question: what is causing the crypto crash today? Bitcoin 
Bitcoin ▼-2.36% fell below $112K and is currently trading at $112,660, which has pulled the total trading market cap down to $3.9 trillion. As reported by Coinglass, more than 402,000 traders faced liquidations in the past 24 hours, resulting in losses of $1.7 billion in positions. Long positions suffered the most, with losses reaching $1.62 billion, while shorts incurred roughly $85.8 million in losses. Ethereum Ethereum ▼-5.82% experienced $483 million in liquidations, while Bitcoin traders encountered $276 million in losses.
This selloff occurs as traders prepare for over $517 million in token unlocks expected in the upcoming week, heightening concerns about additional selling pressure.
(Source: Coinglass)
Amidst the widespread downturn, investors are already questioning what might be the best crypto to purchase during this decline. Traditionally, such setbacks have provided opportunities for long-term accumulation, although price swings in the near term may continue. Is this the ultimate low point?
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What Lies Ahead for BTC and the Market?
While the immediate crash can be attributed to liquidations and crypto token unlocks, broader macroeconomic uncertainties are also impacting market sentiment. A silver lining, however, is the $163 million in inflows into U.S. Bitcoin spot ETFs, indicating that institutional interest remains intact.
BTC is now confronting a pivotal challenge at the $112K price floor level. Should bulls fail to sustain this mark, BTC may revisit $108K or even fall to $100K. Conversely, reclaiming $117K could pave the way for another shot at $123K. ETH continues to capture attention following its decline, as traders monitor its ability to stabilize above the $4,000 threshold.
For long-term investors, downturns like these frequently highlight promising buying opportunities, particularly in leading assets like BTC, Ethereum, and SOL. Nonetheless, traders should remain vigilant regarding short-term fluctuations as the market adjusts to both liquidations and supply shocks driven by unlocks.
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The article Why Is Crypto Crashing Today? BTC Fell Below $112K And $1.7 Billion in Liquidations – Best Crypto To Buy During This Dip? was first published on 99Bitcoins.
