Crypto Market Crash Alert: Bitcoin Dives Below $121K and Altcoins Plummet What’s Really Behind Today’s Massive Sell-Off?
Crypto markets are taking a serious hit as Bitcoin tumbles below the crucial $121,000 support level, dragging the total crypto market cap down to $4.15 trillion. Major coins like DoubleZero, World Liberty Financial (WLFI), Pi Network, and Zcash have all crashed by over 10% in the past 24 hours, sending shockwaves through the industry.
Why Is the Crypto Crash Happening Now?
1. Massive Liquidations Triggered the Sell-Off
The biggest driver behind today’s crypto market meltdown is a surge in liquidations. Over 180,000 crypto traders holding long positions got forced out as exchanges shut down their trades to cut losses. Ethereum took the brunt with more than $170 million of positions liquidated, followed by Bitcoin with $160 million wiped out. Solana, XRP, and Dogecoin also saw millions in liquidations, fueling even more panic selling. When exchanges close long positions like this, it usually sparks a chain reaction with investors rushing to sell their holdings.
2. Profit-Taking After Recent Rally
Investors are also cashing in profits after a recent crypto price rally. Bitcoin dropped sharply to $120,000 just days after soaring above $126,000. This pullback hit many other altcoins as traders decided to lock in gains, a normal occurrence after a strong market rally.
Check Out - Pi network price
Stock Market Worries Add to Crypto Turmoil
The crypto crash coincides with jitters in the stock market, largely driven by concerns about an overheating artificial intelligence (AI) industry bubble. Shares of AI giants like Oracle nosedived 2.5%, dragging down related companies such as Nebius and CoreWeave. A report warning that Oracle struggles to turn the AI boom into profits has investors worried.
Huge multi-billion-dollar AI contracts announced by Nvidia and AMD with companies like OpenAI are fueling skepticism, with analysts questioning whether these deals generate real demand or just create an illusion. Some voices in the industry, including investor Thoma Bravo, have started sounding alarms about a potential AI bubble that could burst either suddenly or over time adding extra uncertainty to crypto investments.
US Government Shutdown Adds Another Layer of Caution
Investors are increasingly expecting the US government shutdown to drag on longer, with odds rising that it will continue beyond October 15. While Bitcoin often benefits as a “safe haven” during such crises, and the shutdown may push the Federal Reserve to cut interest rates, a prolonged government closure will delay US regulatory approvals for altcoin ETFs like XRP and Solana, weighing on market sentiment.
This crash is shaping up as a perfect storm of forced liquidations, profit booking, stock market fears, and geopolitical risks that’s shaking crypto prices hard. Traders are bracing for more volatility but some see this as an opportunity to enter the market at lower levels as the dust settles.
