Why Is The Crypto Market Down Today?

The total crypto market cap (TOTAL) fell further on the daily chart as Bitcoin (BTC) led the tokens lower. Zcash (ZEC) emerged as the worst-performing altcoin of the day, falling by gnarly 20%.

In the news today:-

• The debate over the CLARITY Act has focused on stablecoin yield disputes between banks and crypto firms, overshadowing broader implications. If enacted, the bill could normalize Bank Secrecy Act–style surveillance in crypto, pressuring intermediaries to drop privacy assets before lawmakers fully debate the privacy trade-offs.
• CME Group is exploring the launch of its own crypto-style token, signaling deeper institutional interest in blockchain-based market infrastructure. CEO Terry Duffy said the initiative would focus on margin and tokenized collateral use cases, not consumer payments or retail crypto adoption.

The Crypto Market Sees Red

The total crypto market cap dropped $128 billion in the last 24 hours, falling to $2.41 trillion. This sharp decline reflects persistent bearish sentiment across digital assets. Risk appetite remains weak as investors respond to macro uncertainty, declining liquidity, and continued pressure on major cryptocurrencies.

The sell-off intensified due to a wave of leveraged long liquidations reaching $283 million over the last 24 hours. Forced closures accelerated downside momentum and increased volatility. If liquidation pressure persists into the weekend, TOTAL could retest support near $2.36 trillion. A deeper breakdown may extend losses toward the $2.30 trillion level.

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TOTAL Price Analysis. Source: TradingView

A recovery remains possible if market conditions improve. Stronger inflows into crypto assets and stabilizing derivatives data could support a rebound. Reclaiming $2.45 trillion is critical for trend reversal. Securing that level may allow TOTAL to advance toward the $2.55 trillion resistance zone.

Bitcoin Is Nearing 14-Month Low

Bitcoin extended its decline through Thursday, with the price sliding to $71,424 at the time of writing. Despite sustained selling pressure, BTC remains above the critical $70,000 support. This level has historically attracted demand, offering temporary stability amid heightened volatility and weakening short-term market confidence.

Downside risks are rising as momentum indicators continue to weaken. A breakdown below $70,000 would mark a 14-month low for Bitcoin. Such a move could trigger additional long liquidations, amplifying selling pressure and accelerating losses toward the $65,360 level under stressed market conditions.

Bitcoin Price Analysis. Source: TradingView

Holding the $70,000 support is crucial to avoid deeper losses. This level also serves as a key psychological threshold for investors. If buying interest strengthens, a rebound remains possible. Reclaiming $75,000 is the immediate upside target to signal renewed recovery momentum.

Zcash May Fulfill Investors’ Expectations

ZEC emerged as the worst-performing cryptocurrency of the day, reinforcing the previously forecast 55% decline. The asset broke down from its triangle pattern in mid-January. Since then, bearish momentum has intensified, pushing ZEC price to $245 and confirming structural weakness across the short-term trend.

Current market conditions continue to favor downside risk for ZEC. Rising outflows have failed to invalidate the bearish setup. After losing the $256 support, ZEC remains exposed to a decline toward $204. A breakdown below that level could extend losses to $171, completing the projected crash scenario.

ZEC Price Analysis. Source: TradingView

A reversal remains possible if buyers defend key support. A bounce from $204 or an early recovery could shift sentiment. Flipping $256 back into support would signal renewed strength. Under that outcome, the ZEC price could recover toward $300, fully invalidating the prevailing bearish thesis.