Crypto Market Crash? Here's Why Prices Are Dropping Today

The crypto market is taking a hit today, with prices sliding across the board. If you're wondering why your portfolio is looking rough, you're not alone. 

The total crypto market cap has dropped by 3.2% to $3.41 trillion, with 90 of the top 100 coins by market cap seeing losses in the last 24 hours. 

Trading volume sits at $90.9 billion, reflecting a cautious market mood. Let’s break down what’s driving this dip, key levels to watch, and what might happen next.

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What’s Happening with Crypto Prices?

Bitcoin (BTC), the market leader, is down 0.9% to $106,974, after hitting a daily low of $106,831. Despite this, June marked Bitcoin’s highest monthly close ever at $107,171, showing some resilience. 

Ethereum (ETH) isn’t faring much better, dropping 0.8% to $2,460. Both coins are struggling to break through key resistance levels, $108,000 for BTC and $2,518 for ETH, indicating a lack of strong bullish momentum.

Altcoins: Mixed Bag with Big Losers

Among the top 10 coins, Dogecoin (DOGE) took the biggest hit, falling 1.7% to $0.1629. On the flip side, XRP led the pack with a 1.6% gain to $2.22, while Solana (SOL) and Tron (TRX) saw modest upticks of 0.5% and 0.4%. 

Outside the top 10, Bitcoin Cash (BCH) and Algorand (ALGO) bucked the trend, jumping 5.1% to $523 and 3.8% to $0.1865, respectively. However, Tokenize Xchange (TKX) and SPX6900 (SPX) weren’t so lucky, crashing 10.4% to $25.22 and 10.3% to $1.17.

Market Sentiment: Stuck in Neutral

The Fear and Greed Index is hovering between 47 and 52, signaling a neutral but cautious market. Investors seem to be sitting on the sidelines, waiting for clearer signals before making big moves. This hesitation is contributing to the current price consolidation.

Read Also: Massive Liquidations Shake the Crypto Market

Why Is the Market Down?

Trump’s “Big Beautiful Bill” Sparks Uncertainty

A major driver of today’s dip is the recent passage of Trump’s “Big Beautiful Bill” by the U.S. Senate. 

This legislation has stirred uncertainty, leading to a $44 billion drop in the total crypto market cap, now at $3.22 trillion. The bill’s unclear impact on crypto regulation is spooking investors, fueling negative sentiment and dampening confidence.

Lack of Strong Catalysts

Analysts at Bitfinex note that Bitcoin is entering its historically weakest quarter (Q3) without major catalysts to drive growth. Despite a strong Q2 close, on-chain data shows a “critical demand deficit,” with buyer appetite lagging behind supply. 

James Toledano, COO of Unity Wallet, points out that while Bitcoin’s $107,171 June close and 30% Q2 gain show institutional confidence, declining apparent demand and macroeconomic factors like rate cut expectations and political tensions suggest short-term caution.

Leverage and Volatility

The market is “highly reactive,” with fragile conviction amplified by leverage, according to Bitfinex. While open interest in derivatives has rebalanced, creating a cleaner landscape, price action is likely to remain range-bound between $100,000 and $110,000 in the near term. Sharp deviations could occur, but they’re expected to be short-lived.

Read Also: Understanding the History and How the Crypto Bubble Works

Bright Spots Amid the Dip

Despite the price drop, institutions are doubling down on crypto. Strategy (formerly MicroStrategy) scooped up 4,980 BTC, while Metaplanet added 1,005 BTC, bringing its total to 13,350 BTC valued at $1.45 billion. 

This makes Metaplanet the fifth-largest corporate Bitcoin holder, surpassing mining company Cleanspark.

Key Levels to Watch

Bitcoin is holding above its $106,450 support level but struggling to break $108,000. A clean break above this could push BTC toward $108,980 and potentially challenge its all-time high. 

However, if selling pressure mounts, a drop below $105,000 could see Bitcoin test $102,734, signaling stronger bearish sentiment.

Total Market Cap Outlook

The total crypto market cap is sitting at a critical $3.21 trillion support level. If macro conditions stabilize, it could rebound to $3.26 trillion, restoring some optimism. 

But a break below $3.21 trillion might push it down to $3.16 trillion, especially if negative sentiment persists.

Read Also: Why is the Cryptocurrency Market Down Today?

What’s Next for Crypto?

Short-Term Caution, Long-Term Hope

The crypto market’s current dip is driven by a mix of regulatory uncertainty, weak demand, and a lack of catalysts. 

While Bitcoin and Ethereum are holding key support levels, the broader market is in a wait-and-see mode. Q3 is historically tough for crypto, and without a major spark, like strong ETF flows or a macro relief rally, prices may stay range-bound.

Reasons for Optimism

Despite the gloom, institutional buying, ETF inflows, and regulatory progress in places like South Korea point to a maturing market. 

If Bitcoin can hold above $104,000, Toledano suggests a psychological and technical breakout could draw in sidelined capital, especially as investors flee U.S. equities. The cleaner derivatives landscape also sets the stage for more stable positioning moving forward.

Conclusion

Today’s crypto market dip is a mix of short-term jitters and structural challenges. Trump’s bill, weak Q3 seasonality, and cautious sentiment are weighing on prices, but institutional moves and regulatory wins show the market’s long-term potential. 

Keep an eye on Bitcoin’s $108,000 resistance and the $3.21 trillion market cap support. If these hold, a recovery could be on the horizon. For now, stay patient and watch for catalysts that could shift the tide. 

FAQ

Why is Bitcoin struggling to break $108K?

BTC is hitting resistance at $108,000 due to weak demand, cautious sentiment, and lack of major catalysts, despite closing June strong.

What caused the $44B drop in total market cap?

Trump’s new “Big Beautiful Bill” triggered uncertainty around crypto regulation, sparking a $44B wipeout in market cap.

Is this crash driven by leverage?

Yes, high leverage and fragile conviction are amplifying short-term volatility, keeping BTC range-bound between $100K–$110K.

What key support levels should traders watch?

BTC needs to hold $106,450 to avoid sliding toward $102,734. Market cap must stay above $3.21T or risk dipping to $3.16T.

Any bullish signals despite the dip?

Definitely, institutions are buying big. Metaplanet and Strategy both added thousands of BTC, signaling strong long-term confidence.

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