🌍 Top 4 Reasons Why the Crypto Market is Crashing Today

Josh Altons - Jan 27 - - Dev Community

📉 Market Downturn Hits Hard
The crypto market lost over $212 billion in the last 24 hours, causing a 5.4% drop in global market cap to $3.42 trillion. Surprisingly, this crash is linked to movements in the U.S. stock market rather than crypto-specific issues.

🤖 Chinese AI App Sparks Panic
A new Chinese AI app, DeepSeek, shook investor confidence after becoming the top app on Apple’s App Store. Developed for under $10M, its success raised concerns about overvalued U.S. tech stocks, leading to stock sell-offs that spread to the crypto market.

💸 Massive Liquidations Add Pressure
Over $613M in crypto positions were liquidated in 24 hours, with $569M lost by long traders. The largest single liquidation, worth $98.46M, occurred on the HTX exchange, adding to the market turmoil.

📊 Bitcoin and Altcoins Struggle
Bitcoin dropped over 5%, trading near $99,969, with $100K acting as critical support. Altcoins like ETH, XRP, and SOL have fallen by 8-10%, while meme coins $DOGE and SHIB declined 8% and 7%. $PEPE and $TRUMP tokens saw sharper drops of 13%.

⚠️ Disclaimer:
This post is for informational purposes only and does not constitute financial advice or endorsement. Participation in these promotions is entirely voluntary, and you should carefully review the terms and conditions before proceeding.
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