Why Is The Crypto Market Down Today?

The total crypto market cap (TOTAL) witnessed a sharp drop today as over $162 billion was wiped out in the last 24 hours. Bitcoin (BTC) fell below $86,000 in the process, with altcoins following suit, led by Zcash (ZEC), falling by 20% today.

In the news today:-

• Global capital is pouring into US markets at record levels, with foreign investors heavily buying equities and Treasury demand shifting structurally. Meanwhile, US consumer debt has hit an all-time high, signaling a major shift in global risk appetite that could impact both crypto and equity markets.
• Japan’s 2-year bond yield hit 1% for the first time since 2008 after BOJ Governor Kazuo Ueda hinted at a possible rate hike. The move threatens to unwind decades of yen carry trades, raising the risk of global deleveraging across major asset classes.

The Crypto Market Falls

The total crypto market cap dropped by $162 billion in the past 24 hours, falling to $2.89 trillion. TOTAL is now holding just above the key $2.87 trillion support level as investors assess ongoing volatility and market-wide uncertainty.

A wave of liquidations triggered a cascading sell-off, pushing major tokens sharply lower. If this decline persists, TOTAL may break below $2.87 trillion and fall toward $2.80 trillion, deepening losses across the crypto market.

Total Crypto Market Cap Analysis. Source: TradingView

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If conditions stabilize, TOTAL could rebound from the $2.87 trillion support zone. A push toward $2.93 trillion would be the first recovery signal. Breaking that level could reopen the path toward $3.00 trillion and higher.

Bitcoin Loses Crucial Support

Bitcoin is down 5% today, trading at $85,801 while holding just above the $85,204 support level. If broader market conditions worsen, BTC could lose this footing and slip below $85,000, increasing downside pressure.

A breakdown would leave Bitcoin vulnerable to a decline toward $82,503, a level previously tested during intra-day lows. Losing that support could open the door to a deeper correction toward $80,000, extending investor losses.

Bitcoin Price Analysis. Source: TradingView

If conditions improve, Bitcoin may rebound from $85,204 and regain upward momentum. A climb toward $89,800 would be the first major recovery signal. Breaking that barrier is essential for completing a broader market rebound.

Zcash Hits Monthly Low

ZEC is down 20% in the past 24 hours and now trades at $364, holding just above the crucial $344 support level. The sharp decline reflects significant selling pressure as the broader market continues to struggle.

Bearish momentum remains strong, with ZEC falling 36% in the last week from $572 to an intra-day low of $351. Losing the $344 support could trigger a deeper drop toward $300, extending the altcoin’s steep correction.

ZEC Price Analysis. Source: TradingView

If market conditions improve, ZEC could attempt a recovery. A rebound toward $400 would be the first sign of renewed strength. Breaking this barrier is essential for a move toward $442, which would invalidate the bearish thesis and restore bullish sentiment.